"Negative Risk Trinity": What's Behind The Market's Sullen Vibe, And What Comes Next

Despite stocks trading just shy of all time highs, traders are increasingly listless and cautious, prompting questions among strategists what is the reason for this lack of excitement, and prompting speculation how this episode plays out and what happens next. 

Let's start with the latest note (available to pro subs) from JPM's Positioning Intel head John Schlegel, who wrote that "not a lot had changed at the aggregate positioning level over the past week, despite market gyrations" adding that modest hedge fund re-grossing picked up last week - as hedge funds added gross exposure on 4 of the past 5 days for a 1.3-sigma increase in the past week, the highest since late June.