
Goldman Sachs’ equity-trading desk is telling clients that the recent rout in high-flying momentum shares may offer a tactical buying opportunity. The bank says its long-short momentum basket has fallen about 13% in the past two weeks after investors rotated out of the year’s best performers. Historical analysis by the desk shows that when the basket drops 10% or more within five trading sessions, it advances in the subsequent week 80% of the time, with a median gain of 4.5%. The median return one month after such sell-offs exceeds 11%. A senior Goldman technology trader described the pull-back as “nothing more than a dose of mean reversion,” arguing it is unlikely to mark the start of a broader market correction.





