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The Bad News: CTAs Just Dumped A Record Amount Of Stocks; Here Is The Good News...

Tyler Durden's Photo
by Tyler Durden
Friday, Sep 09, 2022 - 05:20 PM

With stocks slumping since mid-August, the mood on Wall Street had turned near apocalyptic again as even seemingly inexhaustible meme stock-chasing retail investors had thrown in the towel on BTFD, and started to sell every ramp. However, after trying several times and failing to break below 3,900, it was only logical that stocks would then ramp up immediately to the peak "gamma gravity" point, which as Goldman's Brian Gartnett calculated was at ES 4,000 by the widest stretch on record: as the Goldman traded calculates, there is +100k in a single daily option line, or as Garrett puts it "Index option $ notional volumes have never been higher."

So having failed to breach a rather sticky support despite the Fed and ECB throwing countless 75bps kitchen sinks at it, what happens next?