Are stock market technicals finally shifting? After nearly five full months of relentless permagloom and doom across Wall Street, which was behind our frequent warning to beware brutal, face-ripping short squeezes, and with the S&P breaking out above its 2023 highs, it appears that sentiment is finally shifting:
According to Goldman's latest Prime Brokerage data from last week showed both Gross and Net leverage (overall book) had their largest weekly increases since early Feb. Here are the details:
- Gross leverage +4.0 pts to 251.9% (5-year high) and Net leverage +1.9 pts to 67.8% (57th percentile 1-year).
- Fundamental L/S Gross leverage +1.9 pts to 185.6% (93rd percentile 1-year) and Net leverage +0.3 pts to 52.0% (99th percentile 1-year).