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Net exposure to the Magnificent 7 group of stocks is back above the peak hit last summer, according to data from Goldman Sachs’ Prime Brokerage Group.
The Mag 7 – (AAPL) (AMZN) (GOOG) (GOOGL) (META) (MSFT) (NVDA) (TSLA) – make up 20.7% of total U.S. single stock net exposure, which is “the highest level on our record and exceeding the previous peak level of 20% seen last summer,” wrote Cullen Morgan, equity derivatives and flows specialist.
“From a flows perspective, Mag 7 stocks collectively have been meaningfully net bought on the Prime book in May MTD, driven by long buys and short covers (1.6 to 1),” Morgan noted. “That said, aggregate net activity was little changed in the past week, driven by risk unwinds with long sales roughly offset by short covers.”
“We have CTAs modeled long $173bn of global equities (100th %tile) after buying $3.9bh last week,” Cullen said. “Estimates over the next week/month are relatively benign.”
Over the next 1 week
- Flat tape: +$1.7B to buy (+$657M SPX to buy)
- Up tape: +$460M to buy (+$145M SPX to buy)
- Down tape: -$13B to sell (+$1.4B SPX to sell)
Over the next 1 month
- Flat tape: +$4B to buy (+$870M SPX to buy)
- Up tape: +$4.5B to buy (+$778M SPX to buy)
- Down tape: -$217B to sell (-$50B SPX to sell)
Key pivot levels for SPX (SP500) (NYSEARCA:SPY) (IVV) (VOO):
- Short term: 5195
- Med term: 4992
- Long term: 4649
