Citi Strategist Says Tech Stock Rally Is Now at Risk of Fizzling Out
- Long positioning at three-year high; average profits 8%: Citi
- Barclays’ Cau sees room for gains as positioning isn’t crowded
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After a 31% surge in the US technology-heavy Nasdaq 100 Index this year, market strategists are at odds about whether investor positioning is getting crowded and if that could put the rally under pressure.
Citigroup Inc. strategist Chris Montagu said long positions in Nasdaq 100 futures are at a three-year high and profit levels elevated. “Position risks are very much biased toward profit taking, which could create a headwind against the on-going rally,” Montagu wrote in a note dated May 30.