By: Golden 10 data
The sell-off in the US market may have only just begun, as Goldman Sachs traders have "pressed the panic button," warning that the market is about to face a perfect sell-off storm of "positions, valuations, breadth, concentration, and policy."
There are many factors that can explain why Goldman Sachs has suddenly become very bearish. The current situation is that the weak support provided by the 50-day moving average of the S&P 500 Index (SPX) at 6010 points has been broken, and the 100-day moving average has also just been breached. The CTA's short-term momentum has shifted from positive to negative, and after the options expiration last Friday, the previously very high dealer gamma positions (which provided solid buffers for stocks in either direction) have decreased by about 50%, meaning that the market will be able to fluctuate more freely this week.
The implication from Goldman Sachs traders is clearly that the sell-off will continue. Last but not least, trend followers have also arrived.
Prior to this, CTAs had been happy to lift stock prices because others were doing the same, but now they have entered full liquidation mode. Moreover, they still have a lot of liquidation work to do.
Poster Comment:
Trump tells all federal agencies to cut big by March 13 and shrink the swamp for good
https://citizenwatchreport.com/trump-tells-all-federal-agencies-to-cut-big-by- march-13-and-shrink-the-swamp-for-good/