The Last Time Hedge Funds Were Shorting This Heavily, Stocks Exploded Higher

US equities were heavily net sold last week as the reality of ‘higher-for-longer’ finally spooked both stocks and bonds.

But Goldman’s John Flood notes that this decline was driven almost entirely by short selling, which in notional terms was the largest since Sep ’22, driven by Macro Products and Single Stocks (~70/30 split).