"CTAs Are Now Sellers In Every Scenario Over The Next Week"

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by Tyler Durden
Wednesday, Dec 13, 2023 - 05:13 PM

Back on Oct 17, almost to the day the market hit its lowest level since May, we wrote that "CTAs Are Now Buyers In Every Scenario", a bullish thesis which was further underscored by the arrival of massive stock buybacks a few days later once the buyback blackout period ended (see "Here Comes The Surge In Stock Buybacks As Goldman Models A Record $142BN In CTA Buying") not to mention a huge short squeeze among the hedge fund community (see "After "Record 14 Weeks Of Shorting", Hedge Funds Steamrolled In Epic Meltup Squeeze"). What has followed since then is what The Market Ear called "one of the biggest vol adjusted rallies ever", which only makes sense a few weeks after Michael Wilson said to "forget" about a year-end rally, arguably the worst call in recent history.

Still, while much depends on what Powell will say at 2pm today, one thing is certain: one of the biggest drivers of the November rally is not only gone, but is now a seller, because as the same Goldman note that previewed the epic meltup two months ago now warns, "CTA are now sellers in every scenario over the next week."