Goldman Says Momentum Traders to Sell Stocks in ‘Every Scenario’
- Notes extended positioning as CTAs built $129 billion in longs
- Citi says bullish Nasdaq 100 bets now pose profit taking risk
This article is for subscribers only.
No matter which way markets go, Goldman Sachs Group Inc. says some traders are modeled to sell stocks over the next week.
Cullen Morgan, an equity derivatives and flows specialist at the bank, expects that commodity trading advisers, or CTAs that surf the momentum of asset prices through long and short bets in the futures market, could be forced to sell after building $129 billion in long positions.