CTAs Just Bought The Most US Stocks In A 10-Day Period On Record... But The Party Is Ending

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by Tyler Durden
Friday, Nov 17, 2023 - 01:45 PM

Back on November 2, when the S&P was trading in the mid-4200s, just above a five-month low hit days earlier, we cautioned bears that the selling avalanche was about to end as a result of two key technical reasons: i) a flurry of stock buybacks - some $5BN per day - had just been unleashed now that the Q3 blackout period had ended, and ii) CTAs who were about go "apeshit" buying stocks purely on vol signals.

For those who missed it the first time, we expanded on the reasons behind the melt up a few days later, adding such technical factors as dealer gamma, record shorting by hedge funds and bullish seasonals.