-1669639567.png)
Emini SP500 Weekly Tarde Set Up
Analysts at Goldman Sachs note 'CTAs are now long $53bn of global equities but, short $10bn US equities – with SX5E positioning at 94th percentile, DAX 82nd, UKX 96th vs SPX 24th percentile. Suggesting systematics getting close to “peak short squeeze territory” outside of the US, but that US equities could have more room momentum and supportive flow dynamics keep on driving spot higher. Bad economic news
This week saw an extension of the equity melt up in a backdrop of dry liquidity. Fading rates to go. CTAs are still buying small on a one week horizon, +$8bn on a flat tape, but asymmetry is deteriorating a lot, with -$134bn to sell on down tape in a month, vs +$34bn to buy on up tape. • Mixed Growth Signals: Fading hopes of China Reopening and poor US data reignited growth concerns. Beijing recorded highest number of cases since the start of the pandemic, adding pressure on reopening names GSXACHTR, who gave back monthly gains. Interesting to see the US PMI decelerating both in Manufacturing and Services. Consumer data on black Friday were however better than expected. Paradoxically, the Fed’s recession fears helped bring down terminal rate expectations, fueling an extension of the squeeze.
.png)
Disclaimer: The material provided is for information purposes only and should not be considered as investment advice. The views, information, or opinions expressed in the text belong solely to the author, and not to the author’s employer, organization, committee or other group or individual or company.
Past performance is not indicative of future results.
High Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% and 75% of retail investor accounts lose money when trading CFDs with Tickmill UK Ltd and Tickmill Europe Ltd respectively. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Futures and Options: Trading futures and options on margin carries a high degree of risk and may result in losses exceeding your initial investment. These products are not suitable for all investors. Ensure you fully understand the risks and take appropriate care to manage your risk.
Patrick has been involved in the financial markets for well over a decade as a self-educated professional trader and money manager. Flitting between the roles of market commentator, analyst and mentor, Patrick has improved the technical skills and psychological stance of literally hundreds of traders – coaching them to become savvy market operators!