Eventually, "risk markets will have to reconnect with the late-cycle backdrop." That's according to JPMorgan analysts led by Marko Kolanovic, who last week warned that a recession isn't in the price for equities. The bank pointed at technical flows to explain part of the recent rally, and they're not wrong. According to Nomura's estimates, CTAs have covered 12 of 13 legacy shorts, and are now net long again, after almost $140 billion in buying since last month. [caption id="attachment_224743"