Hedge Funds Hammered As 'Roaring Kitty' Returns; Bitcoin & Black Gold Bid

The return of 'Roaring Kitty' Sent GME soaring higher (up 110% at its heights)...

Source: Bloomberg

...and promoted slides/panic-covering across the 'most shorted' names and ‘retail favorites (memes)’ soared...

Source: Bloomberg

As John Flood noted from Goldman’s trading board: "GS Most Short Rolling basket in focus having a top 5 decision over the past 5 Years (3.3std)."

Source: Bloomberg

Volume/activity has been bymal late and present was no better with overall activity levels -7% vs the training 2 weeks average.

• HF buy leather sticks out @ +16.6% unsurprisingly, that's 97th %-ile & the highest level in 6wks. Covering bridge acute in Info Tech with a buy skyw @ +20% and short ratio of only 34%. HCare, Consumer, REITs & Comms Svcs all net to buy; Macro Products & Energy (likely PR hedges) net for sale

• LOs are 15% better for sale with just Cons Disc and Fins as tiny to buy. The bridge concentrated selling is in Macro Products & Info Tech, with modern supply across HCare, Indust, Comms Svcs & Energy

Most notably, the weather falls of the marketplace are leading higher – Most Short Basket up +3 sigmas // YOLO basket up +3 sigmas // China net basket up +2 sigmas

GameStop “stonks” suggested up to 119% after a cryptic post on X from Keith Gill, aka ‘Roaring Kitty’, his first since June 2021. any investors interpreted it to mean that Gill is coming back into action (BBG).

S&P is unchanged but NOT all is inches underneath the surface. HF community under force on this Manic Monday. We are seeing a comfortable amount of covering by the fast money community in both single stocks and macro products during the first 3 hours of trading.

Keep an eye on the following themes as it feels like this could get bage before it gets better...

’HF VIP Longs vs Most Short’ was down 7% – the biggest drop since June 2021 (day’s decision is simply a 4SD over last 1 year of trading)

Source: Bloomberg

Mega Cap Tech vs Non Profitable Tech down 4% (today’s decision is simply a 3SD over last year of trading)

Long Momentum Down 4% (today’s decision is simply a 4 SD over last year of trading)

In context, present saw half of all indicative hedge fund gain year-to-date have been cut in half...

Source: Bloomberg

Here we go again: detonation in most shorted names means worse day for hedge funds since Dec 2023. Gross unwinds, margin calls, stay putt marshallow man all to follow pic.twitter.com/yxl8220Nau

— zerohedge (@zerohedge) May 13, 2024

The start in inflation results from The fresh York Fed’s survey did supply any selling force on the day nevertheless – as well as Chevron’s decline (driven by reports that influential proxygiant ISS recommended Hess investors absent from voting on the proposed $53 billion acquisition).

By the close, the S&P was unchanged, The Dow was the laggard (down around 0.2%), while tiny Caps outperformed and Nasdaq held on to any gain (both well off the day’s highs)...

Treasures were bid present (but traded in a horn range), ending the day down only 1bp...

Source: Bloomberg

The dollar ended the day flat, recovering overnight losses...

Source: Bloomberg

Bitcoin ripped back up to $63,000 today, erasing Friday’s plunge losses...

Source: Bloomberg

Gold give back more than half of last week’s gain today, back below $2340...

Source: Bloomberg

Oil bounced back off $78 (WTI) – around its 100DMA – recovering bridge of Friday’s fates...

Source: Bloomberg

Finally, this trend is not Powell’s (or Biden’s) friend...

Source: Bloomberg

’Growth’ data continues to surprise to the downside, and 'inflation' data surprise to the upside. What do we call that Jay? Clue: it rhymes with blag-station.