Original title: Goldman Sachs: short sellers in US stocks are bound to make up this week, sending US stocks to heaven.
Last week, although the s & p 500 fell 1% on Thursday, it rose to a series of record highs throughout the week. Goldman Sachs had previously pointed out that the market would have its best two weeks of the year in early July.
Global stock market sentiment fell sharply last week, with Goldman Sachs observing last Thursday that the New York Stock Exchange jump index TICK was under one of the biggest selling pressures in history (top four) at the start of trading. TICK reflects the rise and fall of stocks on the New York Stock Exchange.
Why was the stock market so volatile last Thursday? The general feeling is that the stock market is falling along with other asset classes. But Goldman Sachs trader Scott Rubner predicts a more likely outcome:
"I think bears need to cover, the Dow, S & P and NASDAQ will reach new all-time highs, long traders have been squeezed by gamma to erase the possibility of potential downside, and the sell-off is almost over."
The following is Rubner's observation on the direction of market funds:
Since January 2019, money market inflows have exceeded $1.707 trillion, global bond inflows have exceeded $1.629 trillion, while global equity inflows have exceeded $154 billion. Wait-and-see cash flow is waiting for the stock market to fall and buy bargains.
Money market inflows in the first half of 2021 were the second largest on record. The first half of 2020 is the largest.
Cash reserves did not decrease in 2021.
Bond inflows appeared to be sizeable in the first half of 2021, the best year in a decade.
The bond market recorded its third-largest quarterly inflows in the first quarter of 2021 and the seventh-largest quarterly inflows on record in the second quarter of 2021.
There have been a lot of inflows into global stock markets so far this year, but in a longer time frame, it doesn't seem extreme at all.
"We are still in the best two weeks of the year, with a lot of money flowing into the stock market and 401k pensions returning to the stock market at a record rate. We think the bears need to be covered. "