CTAs are ending 2024 with slight gains, holding stretched positions in USD, bonds, and equities.

From Investing.com: 2024-12-30 05:38:19

Trend-following CTAs are ending 2024 with slight gains, up 2.55% year-to-date as of December 26 after a volatile year. They currently hold stretched positions in USD, bonds, and US equities. SPX gamma has been highly volatile, reaching +$15.8 billion on Tuesday. In fixed income, CTAs are 57% short on 10-year Treasury futures.

Commodities outlook for CTAs is mixed, with gold long and soybean products short. Currency positions are polarized, with heavy short positions on the euro and pound. BofA’s model predicts potential market shifts, like unwinding long positions if the index sees a 2.4% decline.



Read more at Investing.com: How are CTAs positioned entering 2025? By Investing.com