Risk-off: forced selling and Taiwan bear market
Leveraged ETF rebalancing produced an estimated $57B of selling on Nov 5, CTAs are expected to keep selling, and Taiwan's Taiex entered a bear market, triggering its stabilization fund.
What we know
Morgan Stanley's estimate shows heavy forced selling, and Goldman's trader expects CTAs to keep selling SPX and NDX. Taiwan's Taiex fell 4.5% to a bear market, prompting the NT$500B fund. an account on X's portfolio joke went viral. JOLTS openings rose to 7.52M.
By the Global Eye 24 desk, with AI assistance. Updated as the story develops. Spot an error? Write to corrections@globaleye24.com.