Reasons for the "Technical Rebound" in the US Stock Market
Goldman Sachs believes: "As signs of de-escalation in the trade war begin to emerge, light positioning (the net leverage ratio of U.S. long-short funds remains close to a five-year low), and improvements in market technicals, the tactical rationale for betting on a stock market rebound is becoming increasingly compelling." The chart shows that the net leverage ratio and total long-short ratio of the U.S. fundamentals are at the 0th percentile, both close to five-year lows
Goldman Sachs believes: "As signs of de-escalation in the trade war begin to emerge, light positions (the net leverage ratio of U.S. long-short funds remains close to a five-year low), and improvements in market technicals, the rationale for betting on a stock market rebound is becoming increasingly compelling from a tactical perspective."
The chart shows that the net leverage ratio and total long-short ratio of the U.S. fundamentals are at the 0th percentile, both approaching five-year lows.
