Retail Megabulls vs Hedge Fund Uberbears: Why The "Most Hated" Melt-Up Will Continue

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by Tyler Durden
Sunday, Aug 07, 2022 - 01:55 PM

Two weeks ago, ahead of the recent face-ripping, "most-hated rally" in tech stocks which has pushed the Nasdaq from the depths of a bear market in May to the verge of a 20%+ bull market last week, we said that with hedge funds positioned bearishly and getting steamrolled by the CTA, buyback and retail driven-rally, they will be forced to chase market upside.

First, we pointed out that amid all the recent preparations for a market crash, hedge funds forgot to "hedge" for a melt up, and as the Goldman Prime Brokerage chart below shows, positioning in the Info Tech sector weighting vs. SPX on the Goldman Prime hit a fresh 10-year low at the end of July....