Nov 10 (Reuters) - Retail investors are dialing back

their risky bets after the longest bullish streak in recent

years, J.P. Morgan analysts wrote in a note, marking a shift in

sentiment that could sap momentum in high-flying U.S. stocks.

The brokerage's readout from Friday showed a drop in bullish

options bets, with call volumes slipping compared to puts, after

roughly 140 days of retail bullishness, the longest stretch in

its four years of tracking such data.

Calls typically signal expectations for prices to rise,

while puts reflect a bearish view.

The retreat underscores that concerns over stretched

valuations, a prolonged government shutdown and uncertainty over

interest-rate cuts have eroded sentiment among retail investors.

Retail risk appetite often serves as a barometer for broader

confidence, especially in momentum-driven sectors. Once

dismissed as a fad, retail traders have helped cushion selloffs

in recent years, treating market dips as buying opportunities.

A note from Vanda Research last month said retail investors

had consistently treated market pullbacks as opportunities to

add exposure. That safety net, however, may now be slipping

away.

TMT SHARES FACE THE BRUNT

J.P. Morgan's retail sentiment gauge has also turned lower,

with the pullback most pronounced in technology, media and

telecom shares.

The brokerage said hedge funds with short positions could

benefit, but equity long/short strategies could suffer.

Last week, Robinhood Markets ( HOOD ), an online brokerage

favored by retail traders, posted stronger-than-expected

earnings. Its CFO Jason Warnick said customers remain drawn to

high-growth names, but are "continuing to stay prudent".

(Reporting by Niket Nishant in Bengaluru; Editing by Arun

Koyyur)