Investing.com — Bullish positioning in the US continues to gain momentum, despite a very mixed macro backdrop, according to Citi strategists.
Recent payroll data indicates a weakening trend in labor markets, which Citi’s economists suggest could prompt the Federal Reserve to consider more rapid and significant rate cuts.
Risk flows were particularly evident in the and , with the Nasdaq showing the largest week-on-week positioning change among the indexes monitored. Long positions on both the S&P and Nasdaq have reached three-year highs, reflecting extended bullish sentiment.
Exchange-traded fund (ETF) flows have aligned with these trends, signaling a consensus among both short- and long-term investors.
“S&P positioning is asymmetric and one-sided long, whereas Nasdaq short positioning has marginally declined below longer-term averages,” Citi strategists led by Chris Montagu said in a note.
“Nasdaq short losses are -2.4% on average with short positioning falling in a narrow band just above 21,050. At this juncture, losses are moderate, but continued market momentum could drive increased unwind risks and lend support to the index.”
In contrast, positioning remained…
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