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      Cyclical positioning

      Strong recovery in Cyclical positioning by hedge funds - back close to ATH (from a Z-score perspective...)

      Cyclical positioning
      Source: JPM PI
      King Euro

      Mizuho reiterates their bullish Euro view;

      "As a geopolitical safe-haven, the upside is considerable, with the global risk-off making the relative safety of the EUR even more apparent. European equities and fixed income should structurally outperform their overvalued and more zombified USD equivalents. The downside to euro appreciation will be capped inflation. As EURUSD goes on to reach our 1.30 target next year, the ECB will need to deliver further easing."

      TME comment, watch the huge trend line for clues. A break out above is possible of course, but we need to consolidate longer before any meaningful attempt is possible.

      King Euro
      Source: Refinitiv
      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
      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