Retreat but no Capitulation - see attached
>>> GLOBAL FUND MANAGER SURVEY: October FMS sentiment most bearish in 2 years but no panic and US growth/EPS recession not priced-in. Autumn pain trade would be US dollar/tech/banks/EZ peripheral bonds down, EM/resources/commodities up. FMS cash level at 4.9% says risk assets oversold & bounce likely in coming weeks.
European Longs closed - see attached
>>> EUROPEAN FUND MANAGER SURVEY: Longs on European stocks closed but Shorts not opened yet. Growth, profits & policy expectations falling but no capitulation. 7/10 expect ECB QE but investors losing faith in whether QE can generategrowth. Positioning is still pro-cyclical except for commodity sectors. Contrarians would go long Basics and short Insurance.