Hedge Funds Turn to Net Selling After 4-Week Rally; Tech Stocks Bear Target

According to Goldman Sachs equity prime brokerage data, hedge funds turned to net selling in the week of June 12-18 after four consecutive weeks of net buying, signaling that short-selling pressure has taken control of the market.

Macro products, including indices and ETFs, recorded their first net selling in five weeks, with the ratio of short selling to long buying reaching 2.4 to 1. Individual stocks continued a modest net selling trend, with a short-to-long ratio of 1.1 to 1. Information technology and industrial stocks emerged as primary targets for net selling, reflecting fund managers' increased caution on tech valuations in the near term.