3 charts we are watching: Squeeze potential; really?

Short selling alert

Hedge fund cumulative short flows in US has shot up dramatically higher...almost largest in 6 months (93rd percentile vs. the past five years), as per GS prime brokerage data. JPM Position Intelligence team also notes that the level of shorts added in past 4 weeks is again getting elevated. Time for Miss Market to give short sellers a little un-friendly squeeze?

Source: Goldman

Equity positioning is close to neutral

Deutsche Bank says positioning is in line with a normal pullback..."while positioning in July looked stretched, it has now been pared back considerably closer to neutral, especially for discretionary investors." Room for investors to re-engage....

Source: Deutsche Bank

The call options implosion

Total net call volume has fallen sharply over the past two months.

Source: Deutsche Bank

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