Goldman Sachs says the ‘pain trade’ for US equities is higher

Reports on a note from Goldman Sachs on Monday (US time) on the prospects for US equities to rally over the next four weeks:

• pain trade for equities is higher
• cite trend-following rule-based systematic funds have shifted from $450 billion long in July to $250 billion long currently and are in the process of re-leveraging
• and, further, potential ‘green sweep’ for commodity trading advisers (CTAs) could result in significant stock buying activity regardless of market direction
• and, even more, equities underpinned by corporate buybacks

This article was written by Eamonn Sheridan at www.forexlive.com.