Market positioning in January was extended. The combination of the U.S.-China Phase 1 trade deal, the U.S. Federal Reserve’s (the “Fed”) 75 bps cuts in the summer and a banking system liquidity surge fueled by the Fed’s $60 billion/month U.S. Treasury bill purchase program resulted in a textbook risk melt up. Exhibit A was that credit spreads tightened to post-Lehman lows. Exhibit B was the large-cap technology sector price surge. Levered investment strategies and systematic investors were programmatically swept into the momentum-driven upswing. Paranoid active managers joined in out of fear of passive annihilation.