On the same topic: Are CTA funds likely to resume buying stocks this week?
$SPY 📊
According to Goldman Sachs, CTA funds may reverse a significant portion of the sales they made last week as early as this coming week. 🛒
Last week, the bank estimated that trend-following funds sold approximately $11.5 billion in global stocks, which reduced their total long exposure to approximately $111 billion. 🫴
Now, the forecast has changed 📊
If the market behaves according to Goldman's base scenario, the funds are expected to return to significant purchases and restore a large portion of the exposure that was sold.
Goldman Sachs' forecasts for the coming week:
🟢 If the market remains stable, the funds are expected to buy approximately $8.49 billion in stocks, of which approximately $2.26 billion will be in US stocks.
🟢 If the market continues to rise, the volume of purchases could increase to approximately $9.66 billion, including approximately $2.93 billion in the US market.
🟢 If the market declines, the funds are expected to sell approximately $4.23 billion in stocks.
It appears that algo funds may join the positive trend in the markets, especially if we continue to receive positive earnings and macro updates that support the markets. 🤖