To The Moon

After 3 consecutive weeks of selling, US equity funds saw +$11.83B inflow last week — the largest since June 24. Tech alone soaked up $4.9B.

$Goldman Sachs(GS)$ Prime data shows that hedge funds resumed heavy buying of US tech stocks last week!

Several key data points are worth noting, which I've listed below:

• US information technology sector saw net buying for the second consecutive week;

• From July 24th to 30th, weekly net buying amounted to approximately 3.5% of the total market capitalization of the tech sector;

• The buying pace was the fastest since December 2022, reaching an intensity of +1.9 standard deviations over the past year;

• Software, semiconductor equipment, and tech hardware were the three sectors with the largest inflows;

• The "Big Seven" tech stocks saw net buying for four consecutive trading days;

• The current net allocation to the "Big Seven" is approximately 16%, higher than the year-to-date low of approximately 14%, but this allocation is still only at the 12th percentile over the past year;

• The long-short ratio for the "Big Seven" has fallen from over 6 times to approximately 3.5-4 times.

The earlier deleveraging was too aggressive. After $Microsoft(MSFT)$ and $Amazon.com(AMZN)$ released their earnings reports, funds began to replenish positions, forcing short sellers to cover their positions, resulting in a very rapid buying pace in the short term.

last week, the best performed top stocks are， $Alphabet(GOOG)$ $Microsoft(MSFT)$ $Amazon.com(AMZN)$

Read more>>Weekly: Stocks Rebound, Fed Dissents, Yields Hit 2007 Highs, Earnings Crush

$Alphabet(GOOG)$ +11.77% — Cloud growth accelerated, AI search ad monetization improved, YouTube Shorts monetization gained traction.

$Microsoft(MSFT)$ +21.75% — Q4 FY2026 EPS $4.74 (beat by $0.50), revenue $90.0B (beat by $2.4B). Microsoft Cloud revenue $54.5B (+29% YoY), commercial RPO surged 99% to $627B. Azure growth steady, AI Copilot penetration climbing.

• $Amazon.com(AMZN)$ +17% — Q2 earnings demolished expectations: EPS $5.75 (vs. $1.82 est, +216% beat), revenue $200.6B (vs. $197.0B est). AWS cloud +17% YoY, advertising +19%, Prime renewal rates hit record highs.

On a positive note, the current positions of the seven major players are not yet crowded, leaving room for further accumulation.

However, the real question now is whether this net buying can be sustained. While short covering in a single week can drive stock prices up quickly, whether it can develop into a new trend ultimately depends on the continued entry of new long positions.

What this tells us:

• Smart money isn't exiting; they're rotating back in

• Tech remains the preferred destination (AI monetization narrative intact)

• Timing aligns with pre-earnings positioning

The question for investors: Is this institutional dip-buying a signal to add exposure, or a trap before volatility?

Drop your thoughts 👇