US Equities Color Squeezy

US markets closed modestly higher in a 'squeezy' session where small caps outperformed and short positions were covered despite mixed retail earnings. Macro short exposure reached a 10-year high, suggesting extreme investor caution and index-level squeeze risk.

Key Takeaways

• 1.Short exposure in US macro products (indices and ETFs) has reached a 10-year high on Goldman's Prime book, creating significant squeeze risk.
• 2.The market environment is characterized by a 'squeeze' in heavily shorted and oversold names, particularly in the TMT and Internet sectors.
• 3.Nvidia's strong earnings were well-previewed and resulted in the stock trading slightly lower, suggesting a pivot toward capital returns and source-of-funds dynamics.

Table of Contents

• TMT Thoughts
• DERIVS
• POST BELL
• Notice to Australian Investors
• Additional Disclaimers
• Notice to Brazilian Investors
• Notice to Investors in the European Economic Area
• Notice to Investors in Korea
• Notice to Investors in Japan
• Notice to Investors in New Zealand
• Notice to Investors in Switzerland

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