More on the wave of CTA selling forecast by Goldman Sachs

I posted this from Goldman Sachs:Goldman Sachs warns trend following hedge funds could sell up to US$42bn over next monthSimilarly, Bank of America are highlighting the potential for CTA selling, nominating a level of 5079 for the S&P 500. BofA says CTA trend following firms have stop loss levels closeimplies that further downside will likely put pressure on CTA US equity longsequity trend strength is deteriorating which implies CTA sellingBoA nominate levels:SPX, 5079NDX, 17273RUT, 1958With systematic selling pressure building, BoA say that some gamma buying will act as a cushion until around 5000. This article was written by Eamonn Sheridan at www.forexlive.com.

Apr 16, 2024 - 04:20
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More on the wave of CTA selling forecast by Goldman Sachs

I posted this from Goldman Sachs:

Similarly, Bank of America are highlighting the potential for CTA selling, nominating a level of 5079 for the S&P 500.

  • BofA says CTA trend following firms have stop loss levels close
  • implies that further downside will likely put pressure on CTA US equity longs
  • equity trend strength is deteriorating which implies CTA selling

BoA nominate levels:

  • SPX, 5079
  • NDX, 17273
  • RUT, 1958

With systematic selling pressure building, BoA say that some gamma buying will act as a cushion until around 5000. This article was written by Eamonn Sheridan at www.forexlive.com.

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