Squeeze Risk and Macro Shorts Weekly Rundown

Goldman Sachs warns of extreme squeeze risk as macro short positions hit a 10-year high while upside call skew reaches levels not seen since the 2021 meme rally. Hedge funds are rotating heavily back into Tech and Discretionary while aggressively shorting Staples despite record-low consumer sentiment.

Key Takeaways

• 1.Macro short exposure in Index and ETF products has reached a 10-year high, creating significant squeeze risk.
• 2.Approximately 25% of the S&P 100 stocks now show inverted call skew, a level comparable to the 2021 meme stock squeeze.
• 3.Hedge funds have reversed their selling of Info Tech, net buying the sector at the fastest pace since March, with Info Tech exposures at 5-year highs.

Table of Contents

• I. Goldman Prime Brokerage
• II. Turning to Goldman's Delta One
• III. Goldman Derivatives Trading
• IV. Sector Specialist Highlights
• TMT (from Peter Callahan and Alexander Joseph)
• Financials & Real Estate (Christian DeGrasse)
• Consumer (Scott Feiler)

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