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      Correlation crash

      As the market has rallied back post liberation day, correlation has aggressively reset lower.

      Correlation crash
      Source: GS
      Back buying Momentum

      Hedge funds have been buying the US momentum factor recently.

      Back buying Momentum
      Source: JPM PI
      Nets crawl back

      The 4 week change in net went from one of the most negative to one of the most positive.

      Nets crawl back
      Source: JPM PI
      She moves in mysterious WAVES

      Historical patterns indicate that when inflation arrives, it on occasion does so in waves. In particular, this was the case during the most recent extended period of elevated inflation in the US, in the 1970’s. In this instance, headline CPI hit a peak of 6.2% in December 1969, then dipped below 3% by mid-1972, only to surge above 12% to 12.3% in December 1974. Two years later, headline CPI had slowed to below 5% but again a renewed spike followed, with an even higher peak of 14.8% reached in March 1980.

      She moves in mysterious WAVES
      Source: Credit Agricole
      Net leverage

      Overall net leverage now at a respectable 87th percentile on a 3-year look-back.

      Net leverage
      Source: GS Prime
      We gonna need a bigger chart

      Gross leverage for US fundamental long/short funds is going exponential. 99th percentile over the past 5 years. Have no fear.

      We gonna need a bigger chart
      Source: GS Prime
      Best month ever

      Mag 7 (the ETF) just had its best calendar month ever... and is up 26% since 4/7.

      Best month ever
      Source: @EricBalchunas
      Gross back to highs

      HF gross leverage (across All Strategies) increased in May, now at the 98th %-tile on a LT basis. Net leverage also started to rebound and is up to the 58th %-tile across All Strategies over the past 5 years.

      Gross back to highs
      Source: JPM PI
      Globally too

      Global Info Tech saw the largest notional long

      buying in over 5 years

      Globally too
      Source: GS Prime
      Superlatives

      "US equities were net bought for a 4th straight week. This week’s $ US long buying – led by single stocks – was the largest since last November (97th percentile 5-year), suggesting increased appetite by HFs to carry idiosyncratic risk. 10 of 11 US sectors were net bought (sans

      Real Estate), led by Info Tech stocks which collectively saw the largest $ long buying in more than 10 years." (chart shows tech buying in the US at 10-year high).

      Superlatives
      Source: GS Prime
      Marvelous May

      We just completed the single best month of May for stocks in the last 35 years.

      Marvelous May
      Source: Carson