Everyone Is Waiting For The Flush... But Here's The Problem, According To JPMorgan

Earlier this week, when we first discussed the flush in stocks, we highlighted that while retail investors were puking up blood (just weeks after unleashing a record buying spree), something odd was happening with institutional and hedge fund traders: they were mostly on the sidelines, some shorting modestly, others "aggressively watching", but nobody was panic selling similar to what retail was doing.

This is a retail liquidation. Zero institutions selling right now

Goldman mid-day recap: "Asset managers continue to “aggressively watch” and HFs are very active again degrossing (HF activity is a 9 out of 10 on our trading desk this AM). In TMT: We saw HFs cut risk in Megacap…

— zerohedge (@zerohedge) February 25, 2025

Which is a problem. because as bank after bank has opined in recent days, the ongoing momentum implosion - and sharp momentum drawdown - is unlikely to end until there is a wholesale market puke... but so far institutions just refuse to puke!