May 14, 07:26 PM

S&P 500 Hits 5750, Global Equities See Second Largest Net Buying Day in Five Years on Hedge Fund Short Covering

On May 12, 2025, global equities experienced their second largest net buying day in five years, driven primarily by short covering and panic buying, according to Goldman Sachs. The buying frenzy was characterized by a 3.7 sigma event in net purchases, with short covering accounting for a ratio of 1.6 to 1. Hedge funds aggressively covered their short positions at the third fastest pace since 2022, contributing to the surge in buying activity. This activity was triggered when the S&P 500 index reached the 5750 level, which was identified as a key point that would force short covering. The widespread short covering and buying frenzy reflect a notable shift in market dynamics, as investors rushed to cover shorts amid volatile conditions.

#Goldman Sachs

Written with ChatGPT (GPT-4).

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Samantha LaDuc@SamanthaLaDuc
1 year ago
$SPX $5750 was the level I said would force "short covering". Well, GS says global equities had their second largest net buying day in 5 years (3.7 sigma) - MAY 12TH! And what else did GS say? Buying was significantly driven by short covers: 1.6 to 1😉 NOT MY FIRST RODEO 💃 https://t.co/3E2UJFppfD https://t.co/tW8NzSZQZx
RufusT 🇺🇸@RufusTFireflyJr
1 year ago
This reminds of when hedge fund founders fire back office employees after a period of bad performance. That ought to right the ship, for sure https://t.co/ahIC5O4tqk
Samantha LaDuc@SamanthaLaDuc
1 year ago
Did someone say "short covering"? May 12th: "Yesterday's notional short covering in US single stocks collectively was the largest since Mar 7th and ranks in the 99th percentile on a 5-year lookback." 😉 https://t.co/EFIxwxl9xa https://t.co/tW8NzSZQZx

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S&P 500 Hits 5750, Global Equities See Second Largest Net Buying Day in Five Years on Hedge Fund Short Covering

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