... the VIX!
According to CFTC data, it seems the world's largest investors are now net long the VIX by 34,383 contracts, or 2.49X on a 1-year Z-score basis. As you can see in the chart below, this makes it the most overextended long position in macro.
Surprise, surprise...
Wall Street was lulled to sleep last year by an environment of almost non-existent volatility. Now, with our global growth slowing call (i.e. #GlobalDivergences) beginning to impact markets, Wall Street is jumping on the higher volatility bandwagon.
Meanwhile, on the short side...
Wall Street's most consensus overextended short position is the Dow Jones Industrial Average. Wall Street is net long by just 21,802 contracts, or -2.7X on a 1-year Z-score. As you can see in the chart below, this make it the most overextended short position in macro.
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