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      Back to kill volatility?

      FX and equity vols continue moving lower. We have had the "sell premium logic for the past 10 days" and remain comfortable with this view for now. We will reconsider that logic when more people start pushing this idea, the first ones just started...

      Back to kill volatility?
      Source: Refinitiv
      Bull bodies:  VIX and S&P 500 P/E

       Risk appetite is improving, volatility compressed across asset classes, positive for equities

      Bull bodies:  VIX and S&P 500 P/E
      Source: Macrobond
      Run it hot

      Cyclicals vs. Defensives are on their best run since 2016.

      Run it hot
      Source: Morgan Stanley
      Lever up

      Net leverage has been creeping higher and higher. Now at a respectable 99% (3-year).

      Lever up
      Source: JPM PI
      Retail roaring

      JPM: "Since November 25th, coming into Friday's session, we have seen 8 consecutive days of retail net buying close to or above $2bn per day [the most over that length since at least Sep."

      Retail roaring
      Source: JPM Retail Radar
      3 sigma

      "...things have flipped as buying has picked up strongly across multiple cohorts such that the 1wk change metric for our US Tactical Positioning Monitor is at +3z."

      3 sigma
      Source: JPM PI
      BTD: The inflow beat

      "The equity inflows boom continued through the November pullback, in sharp contrast to past pullbacks which typically saw outflows. This week however saw inflows continue but slow sharply."

      BTD: The inflow beat
      Source: EPFR
      Top of range

      "Discretionary investors have raised exposure only to the top of the cautious range they have been in since March."

      Top of range
      Source: Deutsche Bank
      Modestly overweight again

      "After the momentum reset, equity positioning had turned underweight by the 3rd week of November, for the first time since July. Over the last two weeks, equity positioning has rebounded to turn modestly overweight again (0.30sd, 60th percentile), close to levels seen in late October."

      Modestly overweight again
      Source: Deutsche