A recent research piece by Goldman highlighted that the market might be too cautiously positioned
A recent research piece by Goldman highlighted that the market might be too cautiously positioned. Two examples: 1/ On the left: Nasdaq-100 futures shorts have risen 35% since mid-June. 2/ On the right: This quarter’s hedge fund de-grossing episode was particularly sharp. Per GS Prime Brokerage data, US Fundamental L/S gross/net leverage now stand at 207% / 49.8%, in the 20th / 6th percentiles vs. the past year. Source: GS
A truly stellar Q2 earnings season
As highlighted by Goldman, S&P 500 earnings grew by approximately 30% year-on-year in Q2 2026, excluding “other income” linked to private investment stakes. Hyperscalers and the AI infrastructure companies benefiting from their capex boom delivered an impressive 54% increase in earnings, contributing roughly half of the index’s total EPS growth. But the earnings strength extended well beyond AI. Excluding the Energy sector—where profits were boosted by higher oil prices—the rest of the S&P 500 still recorded solid and accelerating EPS growth of 14% year-on-year. Source: GS
The 10-year T-Note yields 371bps over what has become a near non-existent S&P 500 dividend yield.
The latter has dwindled to 1.08%. This is partly a function of bull market valuations and partly a function of the societal rise in buybacks. A 24-year wide here... Source: Jeff Weniger
Profit margins: Tech is doing the heavy lifting
Source: Topdown charts
Just didn't
Nike $NKE is getting removed from the S&P 100 after 18 years as the stock crashes 79% in the last 5 years. Source: Trend Spider
Robinhood is having a monster day.
$HOOD surged 13% as Robinhood Chain smashed its previous records, generating approximately $4 million in onchain revenue on September 2—more than any other blockchain that day. So, what exactly is Robinhood Chain? It is an Ethereum Layer 2 network built on Arbitrum and designed for tokenized finance. Its ambition is to bring stocks, ETFs, private assets and other real-world assets onchain—enabling 24/7 trading, self-custody, lending and integration with decentralized finance. The $4 million does not translate directly into $4 million of revenue for Robinhood’s financial statements. But the explosion in activity offers an early glimpse of the platform’s potential—and of Robinhood’s evolution from online broker to financial infrastructure provider. The timing could hardly be better. Morgan Stanley just upgraded $HOOD to Overweight with a $150 price target, while Scotiabank initiated coverage with a Sector Outperform rating. Robinhood is no longer just trying to democratize trading. It wants to rebuild the market infrastructure underneath it. Source: Bull Theory, TradingView
Reminder to stop overthinking what stocks to buy
Source: Nancy Pelosi Stock Tracker
Less than 5% of S&P 500 stocks yield more than the 10-year Treasury yield, the fewest since May 2007.
Source: Rob Anderson
