Citigroup’s latest review of global market positioning has identified key trends in crowded trades. The report indicates that investor sentiment varies significantly across different regions and sectors. Communication services and technology sectors are among the most crowded in the United States and Asia excluding Japan, while energy and financials dominate in Europe and Japan.
In Australia, the technology sector is currently the most crowded trade. Conversely, financials lead crowding in Europe on an equal-weighted basis. Citigroup noted some notable shifts, including a decline in technology and an increase in utilities crowding in Europe. Additionally, there’s a decline in energy and financials crowding in Asia excluding Japan, coupled with a rise in crowding for Industrials in that region.
Regarding other sectors in Australia, consumer discretionary has fallen to third place in terms of crowding. Communication services have surged from the second least crowded to the fourth most crowded sector. Meanwhile, health care and energy have declined towards the bottom of the pack, according to Citigroup’s analysis.
Within the ‘Magnificent Seven’ stocks, Amazon’s short crowding score remains near the universe average. Apple experienced the largest increase in long crowding and the largest decrease in short crowding scores over the past one and four weeks. Nvidia’s crowding score is unchanged over the past week and remains a highly crowded long.
