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by Tyler Durden
Tuesday, May 11, 2021 - 11:31 AM
Late on Monday, we made two important observations: i) hedge funds had never been more levered to market moves, with gross leverage at all time highs, as hedge funds strive to extract every last ounce of beta from the market (net leverage was also extremely high, but not record high, and is more a reflection of any given hedge fund s alpha preference).
. and ii) hedge funds had scrambled to short tech shares explaining the recent decline in the Nasdaq, with Goldman Prime pointing out that Info Tech stocks were
net sold for a third straight week and saw the largest week/week $ net selling since last August, and that
While superficially appetite for risk was present, with GS Prime writing that its book
was modestly net bought yesterday (+0.5 SDs vs. average daily flow of the past year), driven by risk-on flows with long buys outpacing short sales 1.6 to 1 with
7 of 11 sectors were net bought on the day led in $ terms by Comm Svcs, Real Estates, Consumer Disc, and Utilities a detailed look reveals that the smart money has decided to aggressively pursue continued declines in tech.
Indeed, validating the recent horrific price action in tech, Goldman Prime notes that i)
Tech stocks were net sold for a 7th straight day (