Hedge funds are leaning into big tech harder than they have in years. Goldman data shows net exposure to the Mag 7 hit nearly 22% as of early October, up from ~15% in July. $MAGS pulled $1B in September alone.
I don't read that as bearish by itself — these are still the names with real cash flows and real earnings power. But it does make me cautious heading into earnings season. When everyone's already in the same trade, a mediocre quarter from $NVDA, $MSFT, or $META can do more damage than it should. There aren't many new buyers left to step in.
I'm not selling anything here, just not adding to mega-caps. Watching CPI Wednesday and how the first big tech reports land later this month. Crowded trades can unwind fast if the setup doesn't deliver.
$SPY $SPX $QQQ
I don't read that as bearish by itself — these are still the names with real cash flows and real earnings power. But it does make me cautious heading into earnings season. When everyone's already in the same trade, a mediocre quarter from $NVDA, $MSFT, or $META can do more damage than it should. There aren't many new buyers left to step in.
I'm not selling anything here, just not adding to mega-caps. Watching CPI Wednesday and how the first big tech reports land later this month. Crowded trades can unwind fast if the setup doesn't deliver.
$SPY $SPX $QQQ