Macro to Micro: 6 Charts and Trades We Like

This report highlights current market positioning trends, emphasizing the growing influence of retail investors and the recovery of consumer discretionary and financial sectors. It outlines specific long ideas including IAG and Ferrari, supported by shifts in institutional and retail flow data.

Key Takeaways

• 1.Institutional and retail momentum in tech continues, though institutional positioning in Nasdaq futures shows divergence.
• 2.The K-shaped economy favors premium consumer segments; IAG is a preferred long idea due to resilient corporate travel demand.
• 3.Financials sector positioning is turning, with recent prime data showing it as the most net-bought sector last month.

Table of Contents

• Macro to micro - 6 charts and trades we like (#11)
• Positioning in Tech has diverged across Long only funds and the Hedge fund community
• The impact of retail investors continues to shape markets
• The K-shaped economy is back in focus; IAG is our pick
• SKEWED TOWARDS HIGH-EARNING SEGMENTS
• Positioning in Consumer Discretionary is turning
• For a differentiated play on the higher-income consumer – see Ferrari
• Why we are constructive on RACE
• Low positioning is also turning into incremental Longs in Financials