CTA selling activity has been weighing on prices despite concurrent signs of Chinese buying activity, notes Daniel Ghali, Senior Commodities Strategist at TDS.
The scenario now strongly favors a continuation upwards
“With the exhaustion of the CTA selloff now in the rearview, the scenario for flows now strongly favors a continuation higher.”
“We now expect a sharp reversal in the position of trend followers in the coming weeks as our future price simulations now point to extreme asymmetry in expected flows with limited selling activity on the horizon even in a large drop. price, but significant buying activity on a corresponding rally that could see CTAs unload their net short positions and build a net long position.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
