Goldman Explains The "Savage, Sudden, And Material Pain Trade" Higher In Stocks

Here we are again, writes Goldman Sachs trader Bobby Molavi.

The market handing out yet another dose of exactly what investors didn’t want.

A dovish, bad news is good news and fed is done (cuts could be coming) mindset which triggered a beta rip that was felt most acute in most shorted, lower quality, higher leverage and duration space.

Macro still rules the roost…and only a week after we hit 5% for 10 year yields…we found ourselves at 4.5% on the back of easing labour markets and slowing inflationary pressure…..only to see this week yields rising once more.

And so, we see a savage, sudden and material pain trade.