How Much Selling Did We Actually See Last Week?
The set-up remains challenging
We saw some signs of risk reduction last week, though nothing extreme. JPM noted mid-week that the decline in positioning over the past four weeks pushed their Tactical Positioning Monitor into an “attractive” zone, suggesting the potential for a short-term bounce in US equities over the next 2–4 weeks. That said, the setup remains fragile given ongoing Middle East uncertainty and still fairly neutral positioning. Below are eight questions JPM has been getting the most from clients on positioning and flows.