Goldman Sachs' trading division has projected that Commodity Trading Advisors (CTAs) are likely to continue selling both U.S. and global stocks, irrespective of market movements. According to a client report, their models indicate that CTAs will be significant sellers in any market scenario.
If the market remains stable, the S&P 500 E-Mini index could see an outflow of approximately $4 billion. In the event of a market rise by two standard deviations, outflows are estimated at $942 million. Conversely, a market drop by two standard deviations could result in outflows reaching $11.2 billion. Regardless of these scenarios, global stocks are anticipated to face selling pressure.
Last week, CTAs offloaded around $8 billion in global stocks, highlighting their aggressive selling stance.
