You gotta give it to hedge funds, they sure are persistent... although it remains to be seen if they are right.
The last time, the "smart money" was so stubbornly bearish was in late July (see "Hedge Funds Bail: Largest De-Grossing Since Jan 2021 Meme Stock Craze"), when it seemed that nothing could possibly derail stocks from their trajectory of daily record highs (something did in early August, when stocks tumbled and tech and AI names got crushed as the yen carry trade blew up, if only for a few weeks before the latest record buyback wave saved everyone).
Fast forward two months, when just as the Fed put got its emergency kickstart last Wednesday after Powell unexpectedly cut by 50bps to "recalibrate" the economy, and stocks spiked to new all time highs, hedge funds are once again selling, with Goldman's prime brokerage reporting that US equities were net sold for a 6th straight week, with selling driven by short sales slightly outpacing long buys.
