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🟢 Discretionary Investors: fund managers who make discretionary decisions.

 🔵 Systematic Strategies: quantitative strats, CTA, factor models, risk parity, vol targeting, etc.

The vertical axis represents positioning Z-scores, meaning:

➡️ 0 = neutral positioning relative to historical levels.
➡️ +1 = more long (bullish) than usual.
➡️ −1 = more short (bearish) than usual.
➡️ ±2 to ±3 = historically extreme positioning levels.

Interpretation:

➤ Discretionary investors are relatively underweight equities.
➤ Systematic strategies are positioned close to neutral. There are no signs of euphoria.
➤ There are also no signs of extreme capitulation.