<div></div><hr/><div><div><img src="/images/icons/print-icon.svg" alt="print-icon" original-src="/images/icons/print-icon.svg"/></div></div><div><div><img src="/images/icons/premium-content.svg" alt="premium-content" original-src="/images/icons/premium-content.svg"/><span class="PremiumBadge_hideOnMobile__4mcBV">Premium</span></div></div><h1>Goldman: There Has Been A Material Shift In Market Dynamics And Sentiment</h1><div><img alt="Tyler Durden's Photo" src="https://imageproxy.pbkrs.com/https://zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com/s3fs-public/styles/thumbnail/public/pictures/picture-5.jpg?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="200" height="200" original-src="https://imageproxy.pbkrs.com/https://zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com/s3fs-public/styles/thumbnail/public/pictures/picture-5.jpg"/><div>by Tyler Durden</div></div><div>Saturday, Aug 12, 2023 - 06:55 PM</div><div><div></div><div><p><em>By Booby Molavi, Goldman managing director and macro trader (pdf link)</em></p><p><strong>Macro, Micro, Markets, Tech</strong></p><p>The last week has hinted at a shift in market dynamics and sentiment. We had the May/June/July 'stop in' and beta chase, starting in the US on back of AI and duration assets which then broadened into a broader global equities rally built on an assumption of a soft landing. We had the dual benefits of weaker Jobs/Jolts/NFP data coupled with weakening inflation resulting in a view that rates were at peak. We had the tail winds of a Japan reflationary rip and also a China stimulus bounce. <strong>This drove a period of material short covering -the 2-month cumulative notional short covering through June &amp; July was the largest since 2016 &amp; was in the 97th %-ile of the last 10yrs. </strong></p></div><span class="NodeContent_footerStat__1nFUq ViewCount_container__wLSq9"><i></i><span></span></span><div>Loading...</div></div>

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