Hedge Funds at Record Short Positions; Equities Under Pressure
Goldman Sachs data shows hedge funds are shorting global stocks at near-record levels (99th percentile of last 5 years), with short sales outpacing buys 5:1, while NQ is losing key technical bands.
What we know
An account on X reported that Goldman Sachs data shows hedge fund short positions at the 99th percentile of the past five years, with short sales outpacing purchases ~5:1 across global stocks. On the technical side, another account on X flagged NQ is losing Bollinger Bands — an event that historically happens once or twice a year and has been followed by a 5% drop before ripping to new highs. Another account on X is positioned long crypto, short semis, while another account on X noted the Nasdaq was down 3% on October 22. Calpers is retreating from Big Tech as the AI rally falters per FT.
How the story developed
Goldman Sachs data shows hedge funds are shorting global stocks at near-record levels (99th percentile of last 5 years), with short sales outpacing buys 5:1, while NQ is losing key technical bands.
Standard Chartered is buying crypto custodian Zodia Custody outright, while 16 major corporations including Microsoft and Goldman Sachs have formally objected to their stocks being traded as tokens on the OKX/ICE venue.
September pending home sales plunged 7.3% month-over-month to an index reading of 66.0 — a record low — with all four US regions declining. Goldman Sachs maintains broader GDP is still holding despite the weakness.
AI neocloud Nscale is moving ahead with its IPO after SEC feedback, but investors are pushing the company to cut its $30B valuation target to $16-19B. Microsoft's exit from a UK deal is being framed as a broader 'neocloud nightmare.'
Goldman Sachs flags hyperscaler CDS spreads at their widest of the year, implying ~15% downside for underlying stocks. Microsoft cancelled its Nscale data centre deal. The FT declares a reckoning for the $10T AI infrastructure boom.
Sources
“Calpers retreats from Big Tech as AI rally falters”
View post →By the Global Eye 24 desk, with AI assistance. Updated as the story develops. Spot an error? Write to corrections@globaleye24.com.