Extra on the wave of CTA promoting forecast by Goldman Sachs

I posted this from Goldman Sachs:

• Goldman Sachs warns trend following hedge funds could sell up to US$42bn over next month

Equally, Financial institution of America are highlighting the potential for CTA promoting, nominating a degree of 5079 for the S&P 500.

• BofA says CTA development following companies have cease loss ranges shut
• implies that additional draw back will probably put strain on CTA US fairness longs
• fairness development energy is deteriorating which suggests CTA promoting

BoA nominate ranges:

• SPX, 5079
• NDX, 17273
• RUT, 1958

With systematic promoting strain constructing, BoA say that some gamma shopping for will act as a cushion till round 5000.

This text was written by Eamonn Sheridan at www.forexlive.com.