Posted by DigiNomad on 11th of Nov 2022 at 07:53 pm
Steve, I have heard this theory previously (Joe Terranova
mentions it often on CNBC). Sounds plausible, but what happened in
the last big rally over the summer? The market definitely crossed
above and held there for a good few days before failing again.
Seems like the rules maybe aren't followed as strictly as the CTA
firms charters mandate?
Digi - those levels change and CTA's go both ways (think of them
as momentum money). Yes they helped push up the markets last
August - they will turn around and sell just as fast IF support
areas are lost.
Posted by mstaples37 on 11th of Nov 2022 at 05:13 pm
CTA = commodity trading advisor. Steve is saying $100
billion in managed futures trend-following buys would occur above
SPX 4057 (on what closing basis -- daily, weekly, or monthly --
could require clarification).
Newsletter
Subscribe to our email list for regular free market updates
as well as a chance to get coupons!
SPX 4,057 is the long-term
Posted by steve on 11th of Nov 2022 at 04:19 pm
SPX 4,057 is the long-term CTA momentum threshold; if stocks rise above there is $100BN in forced buying above.
Steve, I have heard this
Posted by DigiNomad on 11th of Nov 2022 at 07:53 pm
Steve, I have heard this theory previously (Joe Terranova mentions it often on CNBC). Sounds plausible, but what happened in the last big rally over the summer? The market definitely crossed above and held there for a good few days before failing again. Seems like the rules maybe aren't followed as strictly as the CTA firms charters mandate?
Digi - those levels change
Posted by steve on 12th of Nov 2022 at 09:09 am
Digi - those levels change and CTA's go both ways (think of them as momentum money). Yes they helped push up the markets last August - they will turn around and sell just as fast IF support areas are lost.
CTA = Chicago Transit Authority?
Posted by mastermind on 11th of Nov 2022 at 04:31 pm
CTA = Chicago Transit Authority? California Teachers Association? Consumer Technology Association? Doesn't seem like any of these apply.
CTA = commodity trading advisor.
Posted by mstaples37 on 11th of Nov 2022 at 05:13 pm
CTA = commodity trading advisor. Steve is saying $100 billion in managed futures trend-following buys would occur above SPX 4057 (on what closing basis -- daily, weekly, or monthly -- could require clarification).