Trend-following funds “near-max short” global stocks: JPMorgan analyst

A little update from JPMorgan analyst Bram Kaplan, who monitors flows and positioning like a hawk:

“Based on key momentum signals, CTAs likely turned near-max short across global equity markets as markets plunged,” he wrote in a note sent to clients midday on Monday.

“CTAs” is the abbreviation for commodity trading advisers, which are systematic trend-following funds. Don’t let the name fool you — they’re not just playing in the likes of oil and gold, but are active across futures in different asset classes.

Per his calculations, CTAs are short nearly everything except futures tied to US equity volatility and the Hang Seng China Enterprises Index. That’s a signal of just how intense the retreat has been across global stocks.