The Kobeissi Letter: Institutional investors are actively selling off US stocks at the fastest pace since October last year

On February 6, according to The Kobeissi Letter, institutional investors are actively selling off U.S. stocks. On Wednesday, hedge funds sold U.S. equities at the fastest pace since October of last year, marking the second consecutive day of selling. This was primarily driven by short selling, followed by the liquidation of long positions. This is also the fifth net outflow in the past 6 days. As a result, 5 out of the 11 sectors in the U.S. stock market experienced liquidations, with the technology, industrial, and materials sectors being the most affected. Semiconductors and semiconductor equipment, communication equipment, and technology hardware faced the greatest pressure. The report suggests that this indicates a shift in hedge fund sentiment.