CTAs to sell at least $2.9 billion of stocks this week, Goldman's analysis shows
Commodity Trading Advisors (CTAs) have accumulated long positions in global equities, with models indicating potential sales in various scenarios, according to analysts at Goldman Sachs.
A CTA is an entity or individual offering tailored guidance on the purchase and sale of futures contracts, options on futures.
Goldman’s analysis shows that CTAs have a long position of $144 billion in global equities and $53 billion in US stocks.
In an upward market movement, CTAs are poised to sell $2.9 billion of stocks, while a downward move could trigger sales of $38 billion in stocks and $1.6 billion in S&P 500 futures. In a flat market, CTAs would need to sell $7.5 billion of global stocks.
Looking ahead, the most adverse scenario over the next month would involve a declining market, prompting CTAs to sell $243 billion of stocks and $58 billion of S&P 500 futures.
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