Market Breadth

Risk Parity Funds Suffer Worst Month Since 2015 As Breadthless, Fearless Stock Market Soars

The market moves since the US elections have been both big and surprising, and as JPMorgan notes, fund managers have been either too slow or too reluctant to jump into the Trump trade. However, algo-based Risk-Parity funds suffered the most with their biggest loss since Dec 2015 as market 'fear' tumbles to 9 month lows (and stocks are the most overbought in 13 years).

Traders Worry As Divergence Deja Vu Looms

While 'everything was awesome' this morning in stock market land (economic data, Fed uncertainty, and domestic terrorism aside), the more troubling reality under the surface of the equity market's gains is a plunge in 52-week highs... a divergence which spelled big trouble the last time it occurred.

World's Most Bearish Hedge Fund Says Active Manager Capitulation Is "Getting Close"

"Ultimately everyone is forced in. Sometimes this happens through capitulation by previously sceptical investors, or sometimes it happens through pure greed as fear of missing out takes over. The big question is, how close are we to that moment? I think we are indeed getting close. Goldman Sachs data on hedge funds show that top 10 positions for average hedge funds make up 70% of long positions."