The Market Ear | Live news, analysis and commentary on what moves markets and trading

Sign up here for the free newsletter

Will L/S hedge funds rethink their nets?

This article is part of our Premium coverage, please click here to login and access it or sign up for a Premium account.

Link Copied

World manufacturing is still losing momentum

This article is part of our Premium coverage, please click here to login and access it or sign up for a Premium account.

Link Copied

The magnificent seven

This article is part of our Premium coverage, please click here to login and access it or sign up for a Premium account.

Link Copied

Will "super-stretched" sentiment ever matter again?

Goldman Sachs Sentiment indicator is parked at "very stretched" level. This is similar to many other sentiment & positioning & greed indicators out there. In fact, if there was a very rapid sell-off now - one would look back at these indicators and wonder why one did not go max short. Message is clear: we have been forewarned - and we do not even care anymore. Seems like market has been "vaccinated" against extreme sentiment......On the chart below; the "GS Sentiment Indicator" measures stock positioning across retail, institutional, and foreign investors versus the past 12 months. Readings below -1.0 or above +1.0 indicate extreme positions that are significant in predicting future returns.