JPMorgan Says US Stock Deleveraging Nearing End as CTA Funds Turn Net Short

Cointime reports: JPMorgan global markets strategy head Dubravko said the deleveraging in US stocks is in its late stages, with the concentrated selling process now well advanced. Momentum trade crowding has fallen from the 100th to the 76th historical percentile, while leveraged ETFs sold $60 billion and $35 billion on two key trading days, pushing exposure below January 2026 levels. Trend-following CTA funds have turned net short, and volatility-strategy leverage has dropped from the 65th to the 30th percentile, though about $50 billion may still be left to sell.