Stunning CTA Divergence Hints At Face-Ripping Market Reversal

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by Tyler Durden
Wednesday, May 24, 2023 - 04:25 PM

It has been a brutal year for those short tech stocks and long small caps (and vice versa), with the QQQs soaring to a new bull market in 2023 while the IWM largely unchanged all year, with the March regional banking crisis serving to splinter the two series.

To be sure, it's no secret why tech has outperformed everything this year - it's been all AI, which as we noted last week, has been responsible for more than 100% of all S&P gains in 2023; excluding AI boom stocks, the S&P would be below 3800 today.