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For Crowded Stocks at Heart of Sell-Off, Few Signs of Unwinding

  • Prime brokerage data suggests favorite stocks still favored
  • ‘We are far from some sort of capitulation’: Gina Martin Adams

The worst month for stocks in seven years just ended with the biggest rally since February. Did the forces that snarled equities recede? Going by data on popular positions, it may be a little early to sound the all-clear.

“Crowded trades” has become a catchphrase of the rout, denoting declines in stocks beloved by professional investors that were two or three times worse than the rest of the market. And while the $2 trillion sell-off has eased some of the congestion, it has yet to spur a wholesale unwinding.