Goldman Sachs: CTAs to Sell Up to $75B in Stocks Amid Market Fluctuations

Goldman Sachs forecasts indicate that commodity trading advisers (CTAs) are expected to sell a significant volume of stocks this week, regardless of market conditions. In scenarios where the market remains flat, CTAs are projected to sell $36.6 billion worth of stocks, $18.8 billion of which will be outside the U.S. If the market trends upwards, the figure adjusts to $22.6 billion, with $15.6 billion sold internationally. Conversely, a downward market trend could see CTAs selling up to $70 billion, $34.4 billion of which would be from outside the U.S. This selling strategy is part of the CTAs' approach to leverage momentum in asset prices through long and short positions in the futures market. Additionally, if the market trends lower over the next month, CTAs might need to offload up to $75 billion worth of stocks.