According to The Kobeissi Letter, hedge funds’ bearish positions on US equities have surged to the highest levels since the 2022 bear market, as reported by Unlimited, which analyzes real-time trading data from approximately 3,000 global hedge funds managing about $5 trillion in assets. This significant increase in short positions signals heightened caution and potential downside risk for US stock traders, emphasizing the need for active risk management and close monitoring of market sentiment for optimal trading strategies. Source: The Kobeissi Letter (@KobeissiLetter) on Twitter, May 2, 2025.