Perhaps they were burned by listening to (now former JPM chief equity strategist) Marko Kolanovic for too long (as a reminder he was bullish all the way into the 2022 crash, turned bearish in October and anyone who listened to him missed out on the biggest rally in modern history), but whatever the reason after JPM's trading desk yesterday urged institutions not to buy this dip, they want ahead and bought the dip, at the fastest pace in 5 months!
As Goldman's Prime Brokerage reports this morning, on Monday, global equities were modestly net bought (+0.4 Z score 1-Year), driven by long buys outpacing short sales 1.6 to 1 (risk-on flows) while hedge funds bought the dip in the US (+0.7 Z score), as North America was the only net bought region; all other regions were net sold though notional flows were relatively modest.
US buying came from Single Stocks, which saw the largest 1-day net buying in ~5 months (+2.0 Z score), driven mainly by long buys as short flows were muted. 8 of 11 US sectors were net bought, led by Info Tech + Defensives (Health Care, Staples, Utilities), while Consumer Disc, Real Estate, and Financials were net sold.
