"Lack Of Consistent Direction": The Complete Flows, Technicals And Positioning Market Rundown

Exiting Nvidia/Jackson Hole week and days to go until another closely watched jobs report (according to some this could be the second consecutive negative print in a row), there is some confusion how hedge funds should be positioning as we close out the confusing month of August, and transition out of summer and into fall. Here is what stands out according to Goldman Sachs' trading desks:

1. Hedge Funds modestly re-grossed but their Nets stayed virtually flat on the week, i.e. low from historical standards (3rd percentile over 1 year for Fundamental L/S…).
2. No sign of significant re-risking from Long Onlys.
3. While arguably running at relatively low speed, the ‘non-economic’ bid of CTAs/Corporates/Retail is still alive. And relevant in the context of summer (il)liquidity.
4. Sentiment is decaying to neutral-to-bearish levels while fundamental investors seem hesitant to chase markets higher… when the SPX is one solid day away from new highs.