>>> Asset Class Flows
* Equities: $4.3bn outflows (3 straight weeks) (almost all viaETFs)
* Bonds: $2.4bn outflows (outflows in 8 out of past 9 weeks)
* Money-markets: huge $53bn inflows (largest in 2 years)
* Precious Metals: small outflows ($0.2bn)
>>> Equity Flows
* Japan cracks: $2.0bn outflows (biggest outflows since Nov’14)
* Worst is over for EM: small $0.6bn outflows (outflows in 13 straight weeks but pace of outflows slowing)
* Europe defiant: $2.0bn inflows (inflows in 19 out of past 21 weeks)
* US: $5.0bn outflows (outflows from both ETFs and mutual funds)
* By sector, healthcare funds see $0.9bn outflows (largest in 6 weeks); conversely, energy funds see $0.4bn inflows
>>> Fixed Income Flows
* $2.6bn inflows to Govt/tsy funds (14 straight weeks)
* $2.5 outflows from HY bond funds (outflows in 10 out of past 11 weeks)
* $2.4bn outflows from IG bond funds (4 straight weeks = longest outflow streak since Sep’13)
* $0.6bn outflows from EM debt funds (11 straight weeks)
* 10 straight weeks of outflows from bank loan funds ($0.4bn)
* 6 straight weeks of TIPS outflows ($0.3bn)
--> BofAML Trading Rules: all still signalling "buy" + client marketing feedback unanimously
bearish/all waiting for default + threat of Oct policy action + failure of oil to hit new
lows = big bounce in "crowded shorts" once SPX floor of 1850 held; SPX now
approaching big, important resistance at 2040-2062; v v few expect this ceiling to be
broken.
--> Cracks in “Crowded Longs”: Japan funds see largest weekly outflows ($2.0bn) since
Nov’14; Healthcare funds see outflows in 5 out of past 7 weeks, worst stretch since
Jun’14; watch October FMS (next Tuesday) for positioning unwind in other "crowded
trades" (EU, Tech, Discretionary) or first UW in stocks since Jul’12 to suggest unwind
mostly over.