(Bloomberg) — In a week that saw discretionary buyers beat a quick retreat from risky assets, another set of traders stood up to halt a three-week plunge in the S&P 500: those with little choice but to buy. They included short sellers, whose rush to cover lifted stocks they’re betting against to gains of more […]
Read More(Bloomberg) — A level analysts flagged as a battle line for stocks held up Wednesday, handing bearish equity traders their biggest defeat in a month. Indeed, a rush to cover short sales appeared to contribute to a gain of almost 2% in the S&P 500. A Goldman Sachs Group Inc. basket of the most-shorted stocks […]
Read More(Bloomberg) — One big force at the center of the two-month equity rally is showing signs of fatigue. It’s the behavior of short sellers, whose frantic efforts to unwind bearish wagers created buying that added fuel to the $7 trillion share advance. Evidence is arising now that the process is petering out. Hedge funds that […]
Read More(Bloomberg) — US stock-index futures fell as concerns over the Federal Reserve’s aggressive rate-hike path outweighed robust corporate earnings and China’s stimulus plans. September contracts on the S&P 500 Index slipped 0.3% after the equity benchmark posted modest gains Tuesday amid a rally in retailer stocks. Nasdaq 100 futures retreated 0.5% signaling a selloff in […]
Read More(Bloomberg) — By any conventional measure, AMTD Digital Inc. is one of the world’s most overvalued stocks. The barely profitable Hong Kong financial services firm trades at more than 400 times its latest fiscal-year earnings, compared with about 6 times for Goldman Sachs Group Inc., according to Bloomberg-compiled data. Even after tumbling more than 90% […]
Read More(Bloomberg) — Michael Burry’s Scion Asset Management jettisoned 11 US equities in the second quarter and ended the period with just one. The hedge fund exited positions including Alphabet Inc. and Facebook parent Meta Platforms Inc., while adding private-prison operator Geo Group Inc., which was Scion’s only long stock holding as of June 30, according […]
Read More(Bloomberg) — Stock bears are suddenly getting crushed. Once-dependable momentum trades are misfiring. Inflation-lashed bonds are bouncing back. After another expectations-busting week on Wall Street, sharp market reversals are baffling real-money veterans, retail speculators and quants alike. Big data surprises, including a blockbuster jobs report and a softer-than-expected July consumer price reading, have caught a […]
Read More(Bloomberg) — It’s doomed, it’s a bear-market rally, a rebound that won’t last. All the mud thrown at equities over the last month may well turn out to be true. But it’s getting harder to brush aside the recovery in the S&P 500 as it hovers at a widely watched landmark in charts. Four straight […]
Read More(Bloomberg) — Investors have resumed shunning global stocks in favor of bonds, according to Bank of America Corp. strategists, who say the time is right to step back from US equities after the strong rally in July. Global equity funds had outflows of $2.6 billion in the week through Aug. 3, according to a note […]
Read More(Bloomberg) — The recent brisk rebound in equity markets won’t last as the macroeconomic data continue to deteriorate and earnings forecasts are being slashed, strategists at Goldman Sachs Group Inc. and Sanford C. Bernstein warn. “Without clear signs of a positive shift in macro momentum, temporary re-risking could actually increase risks of another leg lower […]
Read More(Bloomberg) — The July stock-market rebound has emboldened bulls hoping prices will defy the gravity of the Federal Reserve’s escalating fight against inflation. Don’t be fooled, though, Morgan Stanley Wealth Management’s Lisa Shalett said: It’s just another false dawn. The nearly 5% gain in the S&P 500 Index this month has been supported by speculation […]
Read More(Bloomberg) — Like clockwork, a decent few days lift stocks, and out come the charts. Have equities bottomed? Evidence is arrayed to argue this time is different, that this is the bounce that will last. Heeding it now requires conviction bordering on credulity. The data in the bull camp are as follows: a third big […]
Read More(Bloomberg) — US stocks extended gains as investors assessed the outlook for earnings amid speculation disappointments may be already priced into markets. The S&P 500 jumped more than 2%, with all 11 industry groups rising. The broad rally was mirrored in the tech-heavy Nasdaq 100, as megacaps Apple Inc. and Alphabet Inc. bounced back from […]
Read More(Bloomberg) — One of Wall Street’s most prominent bears sees the current rally in US stocks extending — prior to the selloff recommencing. Morgan Stanley strategists led by Michael Wilson say the S&P 500 Index may climb another 5% to 7%, before resuming losses. “We think US equity markets can rally further,” they wrote in […]
Read More(Bloomberg) — Stanley Druckenmiller has a warning for Wall Street: The sharp decline in the stock market isn’t over just yet. “My best guess is that we’re six months into a bear market,” Druckenmiller, who runs Duquesne Family Office, said Thursday at the 2022 Sohn Investment Conference. “For those tactically trading, it’s possible the first […]
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