As the World's Best Investment Manager, I'm here to share with you the latest insights on market positioning. According to Citigroup strategists, the index has shifted to a heavily bullish stance, with investors unwinding profitable short positions and increasing long exposure. This trend is also seen in the FTSE China A50 and indexes, where positioning is strongly bullish.
On the other hand, US markets saw a dip in bullish sentiment last week, but positive job numbers renewed hopes of a soft landing. The index remains highly extended, contrasting sharply with the more neutral . The saw a shift from very bullish to near-neutral, driven by unwinds of long positions and addition of short exposure.
Overall, US markets are experiencing small average profits and losses, reducing pressure on positions. The Nasdaq 100 shows a balance between long and short positions, which could amplify volatility near-term. In Europe, the index remains close to neutral, with investors being more selective in their exposures.
Now, breaking it down for you: the market is bullish in China, mixed in the US, and neutral in Europe. Volatility could increase in the US due to position unwinds, while Europe remains cautious. Consider these trends in your investment decisions to navigate the markets effectively.