Woe is stocks III

More great charts from The Market Ear on where equities are headed.

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Things turned quickly over the past sessions: long gamma dealers turned into short gamma dealers and given the latest puke, this crowd turned into “desperate” sellers of deltas, CTAs have turned into sellers and the corporate buyback bid enters the black out window in mid September.

The “emotionless” seller is here

CTAs chase momentum and trend, they do not care about “fundamentals”. This crowd has been very powerful over the past months, magnifying moves both ways. Gentle reminder via GS:

1) CTAs: All 3 momentum thresholds broken and now in negative territory: Medium term 4147, Long term 4105 and short term 4057. This community is now a MEANINGFUL SELLER of US equities.

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.