Citi Analysts Report Bullish Trends Stalling
Citi Analysts Note Slowdown in January Bullish Trends
Citi analysts released a note on Tuesday, stating that the bullish trends that dominated January came to a halt as February began.
US Equities Long Positions Slowing Down
According to the analysts, the build of long positions on US equities, which was prominent throughout January, has now slowed down. The positioning of S&P and Nasdaq is reported to be slightly less extended than before.
Positioning Shifts Towards Neutral
The slowdown in flows has caused positioning to shift towards neutral as investors take profits on some long positions. ETFs also ended the week with net outflows, as per Citi’s report.
China Futures Flows and Equity Short Positions
The recent bullish turn to China futures flows was short-lived, and the past week saw net positioning only fractionally less bearish. Moreover, China’s historic equity short positions built up over the past 2 months have been unwinding, but the sharp turn in flows has lost momentum, indicating a move by investors to de-lever market exposure.
Overall, it seems that the bullish stock flows have come to a standstill, with various market positions shifting and adjusting in response to changing market conditions. The report from Citi analysts offers valuable insights into the current state of equity markets and the sentiments of investors.
