Raging Bulls Put U.S. at Risk of Amplified Correction, Citi Says
- Longs on the S&P 500 outnumber shorts by nearly 10 to 1
- Small setback could be magnified by forced liquidition: Citi
This article is for subscribers only.
Bullish positions in U.S. equities have risen to such an extent that any minor market correction is at risk of being amplified, according to Citi.
Longs on the S&P 500 outnumber shorts by nearly 10 to 1, with half of those positions likely to face losses on a drop in the index of as little as 2.2%, strategists led by Chris Montagu wrote in a note. That’s a contrast with Europe, where positioning is “more moderate and two-way,” they said.