Clash Breaks Out On Goldman's Trading Floor Between The Bulls And Bears

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by Tyler Durden
Monday, Jan 23, 2023 - 01:30 AM

It's that time again when - like last November - a feud has broken out on the Goldman trading floor between the bears - like the head of hedge fund coverage Tony Pasquariello, who as we noted yesterday, is urging the bank's clients to avoid US equities and if anything, to short any rally above 4,000... and the bulls such as the bank's flows guru, Scott Rubner, who just published an ad hoc report (yes, late on Sunday) focusing precisely on what we first noted earlier, namely the reversal in bearish sentiment resulting from three main things: i) the ongoing underinvestment by hedge funds, ii) the breach of key technical resistance levels and iii) the sizeable increase in demand for super-cap tech (a point underscored by the late Sunday news that hedge fund legend Elliott management has gone activist on software giant Salesforce) which is precisely what we focused on when we quoted GS Prime who noted after info tech stocks were bought by hedge funds for a second straight week after being sold in 10 of the 11 prior weeks.

Below, we excerpt from Rubner's "flash weekend update" (full note available to pro subs):

GS Tactical Flow of Funds