Goldman Sachs Trading Desk: Bullish on US stocks in the next month, shorting before Labor Day requires a higher threshold

Zhitong
2024.08.19 15:55

Goldman Sachs' trading desk stated that the surge in momentum trading and corporate buybacks is expected to drive the US stock market higher in the next four weeks. Scott Rubner, Managing Director and Tactical Expert of Goldman Sachs Global Markets, said, "The threshold for shorting stocks before Labor Day is very high." Rubner accurately predicted the pullback in the US stock market at the end of summer and advised reducing exposure to US stocks after June for July 4th. Now, he has turned bullish on the US stock market, stating that the current positioning and fund flows "favor the market's rise, and the shorts have run out of ammunition." Inflows from trend-following systematic funds may drive the US stock market higher. These funds are starting to leverage up again after reducing their long positions from $450 billion in July to $250 billion. If adjustments are made based on lower liquidity in August, the demand for funds will have a greater impact on the stock market

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