Updated
Updated · Bloomberg · Jun 9
Citigroup Sees Aggressive US Stock Shorts as Nasdaq 100’s 5% Drop Only Partly Resets Tech Bets
Updated
Updated · Bloomberg · Jun 9

Citigroup Sees Aggressive US Stock Shorts as Nasdaq 100’s 5% Drop Only Partly Resets Tech Bets

2 articles · Updated · Bloomberg · Jun 9

Summary

  • Citigroup strategists said traders are aggressively building short positions in US stocks, flagging rising market risk even after last week’s sharp selloff.
  • A near 5% plunge in the Nasdaq 100 on Friday — its steepest one-day drop in 14 months — only partially reduced investor exposure, according to the team led by David Chew.
  • Bullish positioning in technology stocks remains stretched, leaving the market vulnerable if crowded long bets unwind further or short-selling pressure intensifies.

Insights

Is record-high concentration in a few mega-cap stocks pushing the entire US market toward an unavoidable correction?
Are aggressive short-sellers signaling a looming crash, or providing a hidden safety net for the broader market?