P/L pain, CTA chasing and imploding war hedges
Wait and see over
CTAs are shocked by the latest melt up in equities land, but they have remained in wait and see mode, but UBS sees this changing: "However, the 'wait and see' mode is likely over. We anticipate significant CTAs buying over the next two weeks, buying back 50% to 60% of their shorts, ie. 50/60$bln worth of global equities". (projections on CTAs see here)
The CTA puke
Second largest drawdown in 2023 for momentum chasers...