What's Behind The Meltup: Complete Hedge Fund, Institutional And Retail Flows And Positioning

A 2.2% intraday reversal from the pre-market low signaled a clear shift in investor sentiment, as the market increasingly believes further near-term "kinetic action" can be avoided in Iran. While headlines were largely mixed, equity momentum (ETF inflows and CTAs) and anticipation of another strong earnings season both supported the resilience of US equities. 

Turning to the biggest driver of today's action, namely flows and positioning, the two top charts when discussing the latest market positioning and flows are the following, both of which we highlighted last week.