JPMorgan advises reducing leverage in positions, SOX rises 88% in a single quarter

According to ChaoXiang Research, the latest global semiconductor weekly report from JPMorgan points out that the Philadelphia Semiconductor Index saw an increase of 88% in the second quarter, marking the strongest single-quarter performance in the index's history. However, institutions believe that this increase is difficult to sustain unless profits are realized or the capital expenditure growth of cloud vendors truly slows down.

Position data shows that the momentum factor holdings have fallen 17% from the June peak. After hardware semiconductor crowded long positions outperformed crowded short positions by nearly 40 percentage points in June, there have been continuous net sell-offs in July. The overall position percentile of U.S. stocks has dropped from the 60th percentile to the 40th percentile within a month.