Uddrag fra Goldman Sachs/ Zerohedge
US single stocks on the Prime book on Monday saw the largest net selling since Sep ’24 (-2.4 SDs), driven almost entirely by long liquidations.
Source: Goldman Sachs
So far in January in cumulative notional terms, short sales in US equities have outpaced long buys by roughly 10 to 1.
Source: Goldman Sachs
Aggregate US Long/Short ratio (MV) has fallen sharply in the past month and is now roughly in-line with one-year averages in the 57th percentile.
Source: Goldman Sachs
Overall Gross leverage has increased sharply by ~13 pts in January MTD, while Net leverage is roughly flat.
Source: Goldman Sachs
Since the start of the year, aggregate short market value in the US has risen by +5.3%, outpacing the +2.9% increase in long market value.
Source: Goldman Sachs
Coming into this week, US single stock shorts on the Prime book have increased in 22 of the last 25 weeks.
Source: Goldman Sachs
John Marshall in GIR noted a recent surge of option volumes in single stocks…
Source: Goldman Sachs
…which together with strong market seasonality thru mid-February as well as signs of rising animal spirits from retail traders ( h/t Scott Rubner) increase the risk of a short unwind in the near term, in our view.
