Goldman Sachs warns that the accumulation of short positions in the US stock market will become fuel, and there may be a 'short squeeze' rise According to BlockBeats, on May 28th, the latest data from S3 Partners showed that the total short positions in the US and Canadian stock markets have surged by nearly $100 billion since the end of April, rising to $2.13 trillion, the highest record since 2010. At the same time, data from Goldman Sachs' main broker shows that the median net short position ratio of S&P 500 index constituent stocks has risen to 3% of market value, the highest level since the end of 2011. The Goldman Sachs trading team pointed out that this extreme position structure means that the next phase of upward momentum in the market may no longer be led by large technology stocks, but by the "short squeeze" market triggered by short positions being forced to cover - especially in sectors that are not favored and have a high concentration of short positions, the risk of reversal is continuing to accumulate. The bearish bets have spread from the information technology sector to multiple fields such as industry, finance, and energy. The concentration of short positions in defensive sectors is particularly high: the median net short position in the healthcare sector has reached a nearly 30-year peak, and the utilities and consumer goods sectors are also approaching historical highs. Gao Sheng warns that the "right tail risk" in these sectors is significantly increasing. The current sentiment in the US stock market has clearly rebounded compared to March, and funds have begun to rotate: hedge funds bought non essential consumer goods sectors at the fastest pace in two months last week, while net exposure to essential consumer goods fell at the fastest pace in over five years. Wolfe Research, a research institution, believes that if the geopolitical situation eases, non essential consumer goods, technology, industry and other sectors with equal weight allocation are expected to further benefit. [Original link]