A majority of the index level rally off of the April lows has been driven by an abatement of long only supply, combined with HF covering of macro products, according to top Goldman Sachs trader John Flood.
Coming into today, we had not seen significant long buying in single stocks from our largest longer duration investors (living in a “buyers live higher” tape).
However, Flood points out in a brief note this morning, the flow on our trading desk so far today has a different flavor and is more constructive.
