“Over the last 3 weeks, US equities have rallied as fund positioning rose, the buyback bid resumed as companies exited blackout periods and US equity inflows returned over the last week. Overall US equity fund positioning getting elevated. Elevated overall positioning reflects that of long-short hedge funds and asset allocation funds.”
Warning: there’s no structure here. Just some stream of consciousness oil market rambling along with some pretty good excerpts from Bloomberg, Reuters, and SocGen. Oh, and there’s a random chart at the end.
“Cognitive dissonance exists in the US stock market. S&P 500 is up 10% since the election despite negative EPS revisions from sell-side analysts (see Exhibit 1). Investors, S&P 500 management teams, and sell-side analysts do not agree on the most likely path forward.”