Short sellers of U.S. stocks surrender one after another - Citigroup calls the positioning 'one-sided'.

December 3, 2024 21:20 JST

Amid record highs, short position holders have given in.
Sentiment towards European stocks remains bearish, in contrast to US stocks.
As the S&P 500 index continues to hit record highs and is set to end the year with the best performance since 2021, short selling investors are surrendering, as noted by Citigroup strategists.
Strategist Chris Montague pointed out in a report that investors' positioning in S&P 500 futures is 'completely one-sided'.
The S&P 500 has been updating its record high for 4 consecutive weeks, with short position holders giving up one after another.

Investor interest in US stocks has shown no signs of decline this year. The S&P 500 has risen by 27% with tailwinds from the strong performance of technology stocks and a preference for US assets, repeatedly setting new record highs. The rise has further expanded following Donald Trump's presidential election due to expectations of tax cuts and deregulation.

In contrast, positions in Euro Stoxx 50 futures remain bearish, and outflows from listed index ETFs are accelerating.
According to Citigroup's strategist, investors have maintained net short positions against European stocks in recent weeks, with all long positions in futures being in an unrealized loss state.