CTAs Now Buyers In Every Scenario As Buybacks Accelerate And Bearish Funds Capitulate

One month ago, when the sky was falling but the market was falling even faster, we showed readers that systematic positioning (combined CTAs + Risk Parity + Vol Control funds) was the lowest it has ever been (matching the covid crash when the S&P plunged 30% in days), and the selling thrust which was started by CTA liquidations in late March, was now largely over.

Then, one week later, the market rose above the first CTA buy trigger which we said was the signal to start leaning in...