Goldman Derivatives Desk Sees Cracks in Meltup Trading Dynamic

Goldman Sachs analysts observe a shift in market dynamics where institutional investors are net selling equities through ETFs and de-grossing from the high-flying tech sector. The report highlights growing demand for downside protection as the S&P 500's narrow AI-led rally faces macro headwinds from rising yields.

Key Takeaways

• 1.Equities were net sold for the first time in months, primarily through ETFs and macro beta, indicating a return of index shorting.
• 2.The market rally remains extremely narrow, with the S&P 500 more correlated to AI-related stocks than its own constituent companies.
• 3.Hedge funds are 'de-grossing' in the Information Technology sector, taking profits after a significant rally led by Semiconductors and Data Center stocks.

Table of Contents

• 1/ NVDA
• 2. Consumer
• 3. Trades
• 1, Prime Brokerage (i)
• 2. Prime Brokerage (ii)
• 3. Prime Brokerage (iii)
• 3. One-delta
• 4. Futures
• 5. Derivatives (i)
• 6. Derivatives (ii)
• 7. Derivatives (iii)
• 8. Baskets

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