2023-12-04 11:57:13 ET
Hedge funds sold U.S. industrials ( NYSEARCA: XLI ) at the fastest pace since 2021, last week.
The industrial sector ( XLI ) saw the largest net selling since July 2021 during the Nov. 24–30 week, ranking in the 99th percentile, compared to the past five years, according to Goldman Sachs’ Prime Insight and Analytics weekly report.
Industrials was among the most net sold sectors in the U.S., preceded by Information Technology ( XLK ) that saw -2.20 standard deviations. Industrials ( XLI ) saw -1.51 SDs of selling and -1.11 SDs of shorting.
Source: Goldman Sachs Global Banking & Markets data as of 1-Dec-23. Past performance is not indicative of future results.
According to the report, most subsectors were net sold on the week, led in notional terms by aerospace & defense ( SPSIAD ), including long and short sales; professional services (202020), with long and short sales; and machinery (20106020), also with short and long sales.
According to GS’ Prime book, analysts are now overweight industrials ( XLI ), versus the S&P 500 Index ( SPX ) by more than 2.6%, “which is still in the 91st percentile compared to the past year, and in the 98th percentile compared to the past five years.”
In addition, aggregate U.S. industrials ( XLI ) long/short ratio fell 3.5% on the Nov. 24–30 week and now sits at 1.66 SDs, which is in the 9th percentile compared to the past year, and in the 2nd percentile compared to the past five years.
Overall gross sold trading activity increased for the first time in 3 weeks, driven by short and long sales (1.6 to 1).
Eight of 11 global sectors were net sold, led by information technology ( XLK ), industrials ( XLI ), staples ( XLP ), and utilities ( XLU ), while health care ( XLV ), financials ( XLF ), and materials ( XLB ) were the only net bought.
More on Industrial Select Sector SPDR ETF:
- XLI: Diversified Cyclicals Looking Better On Valuation, Bullish Seasonal Tailwinds (Rating Upgrade)
- TD Asset Management says Industrials show there's strength beyond Big Tech
- Global X says AI, cybersecurity among four key themes for 2024
- Seeking Alpha’s Quant Rating on Industrial Select Sector SPDR ETF
- Dividend scorecard for Industrial Select Sector SPDR ETF
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Industrials saw the largest pace of net selling since July 2021