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‘Things Have Changed’: Quants Could Sell $276 Billion In ‘Down Big’ Tape
The systematic crowd has done all it can. The burden of sustaining the equity rally is on you now.
That's an oversimplified version of the message from Goldman's Scott Rubner who, in a rare afternoon note sent late Tuesday, said "things have changed."
"I am tactically bearish," he wrote. "I do not send emails in the afternoon. This goes against every email rule that I follow."
You have to admire the austere discipline of a man who adheres to strict email rules in the 21st century. I'm an asce
Thanks for the post. I’ve been wondering when the systematic ammo would run out.
Every day I read these posts religiously to see the “underworld” I can’t really discern any other way. Politicians and monetary types kvetch over a few billion in maneuvering while quants have $276 bil to dump. I feel like I’m walking down the center of the Santa Monica freeway at rush hour where everyone but me is in a big fast car. To say the least it is a bit unnerving.
And let’s not forget that in many (most?) years this past decade, the single biggest bid has come from corporate buy-backs. If the margin-contraction forecasts of Mike Wilson et. all play out as advertised, that creates a huge pocket of weakness to the downside.
On buybacks and demand from today: https://heisenbergreport.com/2023/04/26/whos-gonna-buy-stocks-now/
And now I see that two posts later, you address this very subject…
Move along folks, nothing to see here.