Stocks Icarus approaches the sun

Tuesday, 28 November 2023

Goldman with the note via ZH.

Are we there yet? Yes. We have less than ~5 trading sessions left of peak flow-of-fund demand for 2023, and then the pain trade moves to the downside, no longer upside.

These are the 13 flow-of-funds points on why the market will be choppy, trade sideways, more ups and downs, and now is a fair fight. The positioning dynamic is now long and no longer a tailwind, mission completed. Trade ideas below given the pre-pandemic (VIX 12.50, lowest since 1/17/2020) volatility reset to fade the green.

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.