Hedge funds just flipped the script last week—sold U.S. stocks for the first time in 3 weeks.
The selling was heavy on macro products (indexes, ETFs)—57% of total sales. Long sales crushed short covers 1.9 to 1.
Single stocks made up the other 43%. Short sales beat long buys 1.5 to 1, with shorts hitting their highest level in 3 months.
7 out of 11 sectors got dumped. Comm Services, Health Care, Energy, and Consumer Staples led the exodus.
Health Care is especially brutal—6 straight weeks of selling, the longest streak in 10 years.
The pattern is clear: as yields keep climbing, hedge funds are pulling back from equities. Risk-off mode is kicking in.
The selling was heavy on macro products (indexes, ETFs)—57% of total sales. Long sales crushed short covers 1.9 to 1.
Single stocks made up the other 43%. Short sales beat long buys 1.5 to 1, with shorts hitting their highest level in 3 months.
7 out of 11 sectors got dumped. Comm Services, Health Care, Energy, and Consumer Staples led the exodus.
Health Care is especially brutal—6 straight weeks of selling, the longest streak in 10 years.
The pattern is clear: as yields keep climbing, hedge funds are pulling back from equities. Risk-off mode is kicking in.
