"Today's Move Made Investors Uncomfortable": Goldman Trading Desk Explains Why The Squeeze Will Accelerate

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by Tyler Durden
Tuesday, Jan 24, 2023 - 02:40 AM

Over the weekend, we reminded readers that on Thursday, JPM's trading desk - despite turning increasingly bearish in recent days - cautioned against shorting the rally because as Matt Reiner on the Cash Trading Desk warned, "something I'm noticing in Tech, and don't think many are talking about it - LO's are quietly adding in Mega names, and consistently too - The demand has been on and off the desk now since Jan 2 this year, but the numbers are starting to adding up - I bet the demand in the near term continues (GOOGL, AAPL, META, AMZN)." As he further explained "If we see the MegaCaps rally, that will likely drag the index higher given the recent increase in market breadth."

We followed up with statistics from Goldman's Prime desk, which confirmed that indeed there had been a dramatic reversal in sentiment when it comes to giga-tech market "generals" as "hedge funds net bought US Info Tech stocks for a second straight week led by Semis & Semi Equip names (after being sold in 10 of the 11 prior weeks)."