The market continues to show signs of strength as we head into the middle of the week, with high beta stocks leading the charge. According to Goldman’s mid-day wrap, the NDX is on track to trade higher for its 10th consecutive session, and the SPX is trading a touch below its ATHs (6978 ATH close / 7002 intraday ATH). Meanwhile, 309 names in the SPX are trading higher today, with one of the sharpest rebounds in the last two decades (+~9.5% in 10 days, H/T Cullen Morgan).

Higher beta, speculative pockets of the market are sitting at the top of Goldman’s thematic leaderboard, with standouts including quantum computing GSX1QNT1 (+12%), Bitcoin sensitive GSCBBTC1 (+5.3%), memes GSXUMEME (+260bps), and AI leaders GSX1AIL1 (+245bps).

The Mag 7 continues to trade well, with gains of +3% today and +15% in the last 10 sessions (up 9 of 10 days). All Mag 7 names are in the green except for AAPL, which is roughly unchanged. The continued strength in the Mag 7 can be attributed to covering of index hedges as the geopolitical backdrop has improved (Mag 7 = 33% of S&P, 40%+ of QQQ), easing of source-of-funds trading that we saw for most of Q1, pre-trading expected earnings strength, and ongoing robust buyback programs, which can persist through closed windows (10b5-1 plans).

Momentum is broadly working today with Goldman’s high beta mo basket GSPRHIMO (+130bps) driven by the long leg of momentum (12 month winners +138bps). Shorted pockets of the market are squeezing with RTY (+155 bps > SPX (+100bps). Goldman’s rolling most short basket GSCBMSAL is squeezing (+220bps), non-profitable tech GSX1NPTC (+265bps), and alts GSFINALT (+430bps).

Goldman is also getting questions on the strength today in alternative asset managers, with the firm noting that they are not seeing an inflection in flows, have seen a pick-up in covering, and at this point, it seems very tied to negative momentum… look at software (IGV).. potentially some additional beta for the alts given the positive leg of momo in fins (banks) have been under pressure today/yesterday.