Two 6-Sigma Shocks In One Week: Welcome To The Momentum Massacre
The momentum massacre
The worst momentum crash in four decades. Two 6-sigma shocks. A 30% drawdown. Hedge funds have been forced into brutal liquidation, but JPM argues the worst of the de-risking may now be behind us. Positioning has reset dramatically, potentially setting the stage for a powerful year-end squeeze. The catch? Retail is starting to blink just as the market needs stability before hedge funds can return.