Goldman Desk: We Now Have An Answer Whether "Long-Only" Demand Would Return After Barrage Of Soft Earnings
Goldman Desk: We Now Have An Answer Whether "Long-Only" Demand Would Return After Barrage Of Soft Earnings Back on Thursday, we wrote that according to the Goldman flow desk, " most clients were hating this rally ", sentiment which Nomura''s Charlie McElligott picked up on that same day when he wrote that the risk over the near term is a "further pile-on to the crowd who has expected another surge lower in stocks, instead squeezing their shorts and accelerating the enormous Systematic buying already going through as CTAs cover and flip long." We also wrote that - for at least a few hours - it appeared that the most steadfast bears who are recently capitulated bulls, and who according to the latest BofA Fund Manager Survey , are now the most pessimistic on record - are starting to capitulate yet again, this time calling a bottom to stocks, and are starting to buy. Indeed, as Goldman flow trader John Flood wrote in in his Thursday end of day wrap , "some noteworthy long-only clients have now started to passively buy on our desk throughout the day (velocity picked up this afternoon as mkt moved higher)" adding that "executed flow across US equities franchise had 338bp buy skew vs 30d avg of -30bp sell skew.
Goldman Desk: We Now Have An Answer Whether "Long-Only" Demand Would Return After Barrage Of Soft Earnings
Goldman Desk: We Now Have An Answer Whether "Long-Only" Demand Would Return After Barrage Of Soft Earnings Back on Thursday, we wrote that according to the Goldman flow desk, " most clients were hating this rally ", sentiment which Nomura''s Charlie McElligott picked up on that same day when he wrote that the risk over the near term is a "further pile-on to the crowd who has expected another surge lower in stocks, instead squeezing their shorts and accelerating the enormous Systematic buying already going through as CTAs cover and flip long." We also wrote that - for at least a few hours - it appeared that the most steadfast bears who are recently capitulated bulls, and who according to the latest BofA Fund Manager Survey , are now the most pessimistic on record - are starting to capitulate yet again, this time calling a bottom to stocks, and are starting to buy. Indeed, as Goldman flow trader John Flood wrote in in his Thursday end of day wrap , "some noteworthy long-only clients have now started to passively buy on our desk throughout the day (velocity picked up this afternoon as mkt moved higher)" adding that "executed flow across US equities franchise had 338bp buy skew vs 30d avg of -30bp sell skew.