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Citi strategists say rising U.S. and European positioning is pressuring short sellers

2026-08-11·newswire-us-stock-095001
Citi strategists say rising U.S. and European positioning is pressuring short sellers.

Citi strategists said positioning in the U.S. and European markets increased over the past week, putting pressure on short sellers, particularly those betting against the S&P 500. The team led by David Chew said investors put new money into both regions last week rather than simply covering short positions.

In the U.S., the rally has caused short-seller losses to mount. The S&P 500's large short base is at risk, and a continued choppy move higher could trigger forced covering, the strategists said. Europe remains one of the strongest-performing regions.

Investors increased their long positions in the Euro Stoxx 50 and the FTSE 100, while confidence in Germany's DAX also improved. Positioning in Asian markets remains mixed.

China's market has stabilized and Australia's ASX 200 has improved, but South Korea's Kospi was a clear exception, with fund flows continuing to deteriorate and positioning nearing excessively bearish levels.

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Full text

Citi strategists say rising U.S. and European positioning is pressuring short sellers

Citi strategists said positioning in the U.S. and European markets increased over the past week, putting pressure on short sellers, particularly those betting against the S&P 500. The team led by David Chew said investors put new money into both regions last week rather than simply covering short positions. In the U.S., the rally has caused short-seller losses to mount. The S&P 500's large short base is at risk, and a continued choppy move higher could trigger forced covering, the strategists said. Europe remains one of the strongest-performing regions. Investors increased their long positions in the Euro Stoxx 50 and the FTSE 100, while confidence in Germany's DAX also improved. Positioning in Asian markets remains mixed. China's market has stabilized and Australia's ASX 200 has improved, but South Korea's Kospi was a clear exception, with fund flows continuing to deteriorate and positioning nearing excessively bearish levels.

Citi strategists said positioning in the U.S. and European markets increased over the past week, putting pressure on short sellers, particularly those betting against the S&P 500.

The team led by David Chew said investors put new money into both regions last week rather than simply covering short positions.

In the U.S., the rally has caused short-seller losses to mount. The S&P 500's large short base is at risk, and a continued choppy move higher could trigger forced covering, the strategists said.

Europe remains one of the strongest-performing regions. Investors increased their long positions in the Euro Stoxx 50 and the FTSE 100, while confidence in Germany's DAX also improved.

Positioning in Asian markets remains mixed. China's market has stabilized and Australia's ASX 200 has improved, but South Korea's Kospi was a clear exception, with fund flows continuing to deteriorate and positioning nearing excessively bearish levels.

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