Hedge fund capitulated with second biggest short covering panic on record during Monday melt-up 🚀
On Monday, the Goldman Prime Brokerage Global equities book saw the second largest notional net buying in 5 years (+4.3 sigma), driven by short covers and to a lesser extent long buys (1.6 to 1). All regions were net bought, led by North America and to a lesser extent Europe (both led by short covers). Goldman HF Prime report shows that hedge funds net bought US equities at the fastest pace since Apr 9th (+4.0 sigma one-year), driven by short covers and long buys (1.5 to 1). Single Stocks / Macro Products were both net bought and made up 53% / 47% of the total notional net buying, led by short covers / long buys, respectively. Source: Goldman, zerohedge
"History does not repeat itself but often rhymes" - Mark Twain
On the back of lower than expected inflation CPI report yesterday, the S&P 500 joined the Nasdaq 100 in the green year-to-date, erasing all of the April pullback. The S&P 500 Trump Tariffs 2.0 line is catching up with the Trump Tariffs 1.0 one... Source: zerohedge
After a 22% rally from the April 7 lows, the S&P 500 is now up on the year.
One of the biggest short-term comebacks in market history. $SPX Source: Charlie Bilello
Capital light businesses outperform over time
Source: Invest In Assets 📈 @InvestInAssets, Goldman
ChatGPT still leads, Gemini rises
40% of U.S. consumers have used a Gen AI tool in the past 30 days. Most used: 1. ChatGPT - 46% 2. Google Gemini - 37% 3. Microsoft Copilot - 25% Which AI tool do you use most? Source: The Future investors
BlackRock, the world's largest asset manager with $11.6 Trillion in assets under management, has 1,131 funds.
BlackRock's BITCOIN ETF, $IBIT, is #9 of all funds after 16 months 👇 Source: HODL15Capital 🇺🇸 @HODL15Capital
Who will be right?
BoA hedge fund clients around record low (to 2008) 4-wk net buying flows. Institutions also have been big sellers, while retail at record highs. Neil Sethi @neilksethi
Here's an intraday composite of the S&P 500's action on the last eight Fed Days
Bulls will be rooting for a reversal of this trend today. Source: Bespoke
