Stocks and Bonds Soar; Russell Rips More Than 5%

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There’s an old saying that if you want to know where the stock market is going, then follow the money. Well, Goldman Sachs has a long history of following the money and has the best proprietary models to do so. 

There is no doubt that this is part of what MrTopStep calls the Wall Street traders “with the better seats.”

Goldman tracks all the short positions, and then calculate how much they need to buy when everyone is short. Kinda like a big GameStop situation. 

“Globally we estimate CTAs are short -$56bn now, and have flipped slightly net long S&P (+$1.6bn). Our flow projections from here still model buying in all global markets in the near-term, with largest flows remaining in SPX. over 1-week: .. flat tape: +$68bn to BUY ($30bn SPX) .. up big: +$96bn to BUY ($29bn SPX) .. down big: +$22bn to BUY ($9bn SPX) over 1-month: .. flat tape: $93bn to BUY ($33bn SPX) .. up big: $203bn to BUY .. down big: -$65bn to SELL. Where they are max short is IWM.”

The max short was clear with the Russell 5.4% rip yesterday.