That is gross
Gross leverage rose further in the past week and is back to the highest levels we’ve seen across hedge funds.
Source: JPM PI
Going to need a bigger chart
GS Prime: “US Fundamental L/S Gross leverage rose +3.1 pts to 213% which is the 99th percentile over the past 3 years.”
Source: GS Prime
Buy buy buy
Global equities were net bought for the 6th week in a row. Net leverage for the overall book now way above where we were when the liberation day sell-off started.
Source: GS Prime
Nets at 93rd percentile
HF net leverage is back to the 77th %-tile over the past 12m and 93rd %-tile over the past 3yrs.
Source: JPM PI
One of the biggest increases in net
JPM Prime: “The change in global HF net leverage among All strategies is showing one of the biggest increases on a rolling 8wk period (+2z from below -2z in early Apr)”
Source: JPM PI
One of the sharpest “risk on” reversals on record
A Societe Generale index tracking cross-asset momentum has this month staged one of its sharpest reversals on record, with nine of 11 components emitting bullish signals.
Source: Soc Gen / Bloomberg
Retail Army
Retail flows have of course recently been stronger than average.
Source: Goldman
All-in
Much more long-term indicator, but still worth remembering. Investors are now “all-in” on stocks with the highest equity allocation in history.
Source: EPFR
Double top?
SPX is trapped inside that rising wedge formation we have been pointing out for some time. Highs have been losing steam, and it looks like we could be making a big double top (with the second high lower). Let’s see how this plays out, but the 21 day around 5950 (futures) is a key level to watch.
Source: LSEG Workspace
Just in time?
Bears throwing in the towel and bulls getting excited just in time for the latest move lower in markets.
