Wells Fargo says CTAs bought US equities, gold and Treasuries

Investing.com -- Commodity Trading Advisors bought $6 billion of US equities over the past week, according to Wells Fargo's latest analysis of market flows and positioning.

The S&P 500 index received $16 billion in exchange-traded fund inflows for the week through Wednesday, up from $7 billion the previous week. Technology stocks drove the increase, with the Nasdaq 100 index seeing inflows rise to $12 billion from $4 billion the prior week.

US equity positioning among CTAs increased to 0.4 standard deviations from 0.2 standard deviations. The S&P 500 stands at 0.3 standard deviations, the Nasdaq 100 at negative 0.3 standard deviations, and the Russell 2000 at 1.0 standard deviation.

CTAs bought $27 billion of global equities, including $7 billion in Europe and $8 billion in the Asia-Pacific region. Global equity positioning reached 0.7 standard deviations, with Europe at 1.6 standard deviations and Asia-Pacific at negative 0.3 standard deviations.

Wells Fargo projects CTAs could buy an additional $7 billion of US equities as long as the S&P 500 remains above 7,600. Europe could see long position unwinding from stretched positioning, led by the FTSE index.

In fixed income, CTAs bought front-end US Treasuries and sold the long-end but remain net short overall. The bank's model suggests front-end buying across most scenarios.

For single-stock leveraged ETFs, NASDAQ:NVDA and SNDK saw the biggest inflows, while PLTR and MU experienced outflows.

In commodities, CTAs remain long oil and bought gold modestly. In agriculture, CTAs turned long sugar.

Wells Fargo's sector sentiment indicators show all sectors remain neutral, with the strongest sentiment in biopharma and life sciences and the weakest in media and entertainment.

You May Also Be Interested In

• BofA says CTA Treasury shorts stable, euro short-cover risk rises
• Nuvectis Pharma (NVCT) files $200M mixed shelf
• QSE closes $6M private placement with final tranche of $674K