CTAs Fueled Late 2022 Market Rally But Have Limited Room Left to Buy, Goldman Sachs Data Shows
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Trend-following trading firms known as CTAs fueled the stock market rally in November and December.
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Goldman Sachs analysis shows CTAs are nearly "max long" on their S&P 500 exposure, carrying about $40B in long positions.
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CTAs have about $150B in overall global equity exposure, limiting their ability to further chase market gains.
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Goldman's CTA exposure data offers a partial view; other traders could still push markets up or down.
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The S&P 500 closed slightly below its record high, up 25% since the start of 2023.