Goldman Trader: "Technicals Are Set To Worsen From Here"

A weekend addendum to the most recent note from Tony Pasquariello, Goldman head of hedge fund coverage. The original can be found here.

Flow-of-funds / positioning: The technicals are set to worsen from here to the core of the Q2 reporting period (i.e. there’s an overhang of spec length coupled with a diminution of buybacks). I’ll also invoke (again) some of the black magic and note that price action has been a bit tricky since last week’s quarterly expiry (this is nothing more than something to be on watch for). Therefore, it’s going to be up to households to continue to support the market in the near-term as they have been, week after week (link here for pro subs).