This time, retail investors in the U.S. stock market did not buy the dip
U.S. tech stocks experienced their worst week since April, with JP Morgan data showing that retail investors failed to buy the dip. The closely watched "MEME stocks," recent IPOs, and unprofitable tech stocks all fell more than 10%. The ongoing buying frenzy has weakened, with CTA stock positions nearing historical highs, and the market is tilted downward. If it breaks below the holding threshold, selling pressure may increase
U.S. tech stocks faced their worst week since April, but JP Morgan's trading department statistics show:
Unlike the situation in April, retail traders did not buy the dip this time.
"Meme stocks," recent IPOs, and unprofitable tech stocks that have garnered significant attention from retail investors have all retreated from recent highs. These indices have fallen more than 10% from the recent peaks set in the past month or two. This once again indicates that the sustained buying frenzy is weakening.
Currently, the stock positions of CTAs remain close to historical highs, so the market is clearly tilted downward. If it falls below their position threshold, the selling pressure from this group could increase significantly.
