With some worried that all hell is about to break loose when Powell opens his mouth and is either much more hawkish than expected, or much more dovish, Goldman trader Cullen Morgan recaps the key market levels and positioning traders should be aware of.
- CTA Corner: We have CTAs modeled long $119bn of global equities and long $57n of US equities.
- GS PB: The GS Equity Fundamental L/S Performance Estimate2 rose +0.42% between 8/4 and 8/10 (vs MSCI World TR -0.14%), driven by alpha of +0.74% – led by both short and long-side gains – partially offset by beta of -0.33% (from market exposure and market sensitivity combined) (link).
- Buybacks: Majority of companies are in their open window period, we estimate ~92% of the S&P 500 are in open window today with ~95% in open window by the end of the week (link).
- Charts in Focus: Sentiment Indicator, SPX vs. Singles Skew, Call Skew vs. Put Skew, S&P Futures Liquidity, Funding Spreads vs. S&P 500.
CTA Corner
