Institutional Insights: Goldman Sachs - Tactical Flow of Funds: August

According to Goldman Sachs flow expert  Scott Rubner "July 17 typically marks the end of summer BBQ / pool / pirate themed party, for the S&P 500 since 1928. The S&P has hit 38 new all time highs, on pace for the 2nd most closing highs in ~100 years, only 1995 is shaping up to be stronger. Blow off top completed (up 13 in 15 sessions), summer slipper engaged. The pain trade is no longer higher from here. I am not buying the dip. July, Friday, option expiration is a good barometer to unclench this massive dealer long gamma position and the market will be able to move more freely into lower trading liquidity and vacations starting next week. As for positioning nearly every one of my charts is at max length. You can pick through a super specific line item such as “HF trimmed M7 tech” but with 2% of the total assets under manage, that is missing the larger household concentration (>50%) that just deployed the second largest passive inflows on record (only to 2021). August is the month for the largest equity outflows. It is clear to me that the passive inflows have slowed, watch market on close imbalances, the market on close imbalance was $8B for sale in the last 3 days. Trade ideas available: (I like NDX and SPX December Lookback put options). There has been a rotation, but not a de -gross thus far, this changes when both factors move lower"