Citi: US Stock Market Bulls Already in Profit, Weakening Growth Outlook Could Trigger Profit-Taking

BlockBeats News, August 19th. In its latest position report, Citi indicated that since August, the long positions in the U.S. stock market have continued to increase, and some trades have entered a phase of being "profitable and more easily liquidated." With the previous continuous rise of indices such as the Nasdaq 100 and Russell 2000, investors' unrealized gains have expanded. Once growth or consumer data weakens, the market will face profit-taking pressure.

Citi strategist David Chew stated that the August U.S. stock market exposure continued to rise, driving the Nasdaq 100 and small-cap stocks to rebound simultaneously. However, the momentum of fund inflows has slowed down, indicating a cooling in the chase for gains. The report specifically mentioned that the long position nominal exposure of the Russell 2000 has risen to a three-year high, with an average unrealized gain of about 2.5%. Such positions are more easily disrupted by macroeconomic data after the bullish sentiment is realized.