The Melt-Up Refused To Care

Institutional asset managers sold $18.3bn in S&P 500 futures during a brief May dip, only to see the market squeeze higher led by semiconductors. The AI trade has become a benchmark risk, with semis now comprising 20% of global net exposure.

Key Takeaways

• 1.Asset managers aggressively sold S&P 500 and semiconductor futures during a mid-May dip, missing the subsequent rally to fresh highs.
• 2.Semiconductor exposure has reached a significant benchmark risk, accounting for 20% of total global exposure.
• 3.The SOX (Semiconductor Index) daily RSI indicates the current bounce is not yet at extremely overbought levels compared to historical peaks.

Table of Contents

• Sold the downtick
• The rates connection
• Following semis
• Not extreme
• Overbought beast
• The AI chase

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