designer491
Hedge funds have been covering shorts on U.S. equities but look like they still have some work to do square positions in tech and growth large-caps.
“The short covering trend during which investors square leveraged positions such as those on US small caps is nearly complete,” strategist Arthur van Slooten wrote in a note. “The increasingly net long Nasdaq positions (COMP.IND) (NDX) (NASDAQ:QQQ) are a major exception.”
Looking at hedge fund positioning the Nasdaq 100 z-score is nearly 3 standard deviations above the mean. That is the largest net long in any asset class.
The Nasdaq 100 long z-score has increased by 2.1 since four weeks ago.
Buying has slowed in the S&P 500 (SP500) (SPY) (IVV) (VOO), where hedge funds are net short with a z-score a little more than -1. The Russell 2000 (RTY) (IWM) is net long with a score around 0.5.
Funds are still the most short on bonds (TBT) (TLT) (SHY) (IEI) (IEF) with the 2-year Treasury (US2Y), 5-year (US5Y) and 10-year (US10Y) with z-scores around -2.
In commodities, hedge funds are long gold (XAUUSD:CUR) (GLD), copper (HG1:COM) (COPX) and platinum (XPTUSD:CUR) (PPLT). They are short crude oil (CL1:COM) (CO1:COM) (USO) (BNO), natural gas (NG1:COM) (UNG) and silver (XAUUSD:CUR) (SLV).
