Monday, April 15, 2024 3:31:07 PM
https://archive.is/www.zerohedge.com/markets/markets-freefall-cta-sell-threshold-triggered
https://archive.is/26jAb
While (last weeks CTA's) report sparked some mockery this morning when futures rebounded strongly, nobody is laughing now that stocks are tumbling, yields are surging, crypto is puking and all hell is breaking loose.
Why? Because - as we clearly warned - the S&P is now down more than 0.90% activating the CTA sell trigger BofA warned about, and sparking reflexive selling as further declines lead to even more selling, potential sparking what could become market rout.
It's not just BofA though: moments ago Goldman's Cullen Morgan wrote that the bank's model agrees with that of BofA, and models CTAs as long $170bn of global equities (still in the 100th %tile) after buying +$2.8bn last week. So far so good: the problem is that Goldman now has CTAs as sellers of SPX in every scenario over the next week and month, to wit:
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