A new bearish move in stocks could trigger more selling by trend followers: BofA in Stock News 27/01/2026 Investing.com — A renewed downside move in equities could set off another wave of selling by trend-following funds, according to Bank of America (BofA). Geopolitical tensions pushed global equities lower last Tuesday, with the and Nasdaq each dropping more than 2% in a single session. Despite that pullback, systematic investors largely stayed the course. “Trend followers largely maintained long equity exposure through the selloff,” analysts led by Chintan Kotecha said, adding that while faster-moving models may have trimmed some U.S. equity longs, medium- and long-term systems remain heavily positioned on the long side. That resilience leaves markets vulnerable if losses deepen. BofA’s models suggest stop-loss levels are now closer, increasing the risk of forced de-risking should prices fall further. Looking ahead to this week, “a further bearish move could trigger more material CTA selling, with the bulk of potential de-risking occurring roughly 3–5% below current levels,” the analysts added. Beyond equities, analysts flagged growing stress in currency positioning, particularly in the yen. They said recent strength in the Japanese currency has left systematic funds “stretched short, with exposures approaching their stop-loss thresholds,” raising the risk of rapid short covering if the rally extends. On a median price path, faster-moving models could begin covering imminently, while a stronger move could force broad-based covering this week. “For , our model flags CTA selling in the 155.1–153.3 region,” the analysts noted. In commodities, trend followers have already started unwinding bearish bets. futures have risen for a fifth straight week, prompting continued short covering, with some faster systems potentially flipping long. saw an even sharper move, with February futures surging 71% in a single week amid severe U.S. cold, a swing BofA said likely forced CTAs out of remaining short positions. Source: Investing.com 2026-01-27 hellenicshippingnews... window.___gcfg = {lang: 'en-US'}; (function(w, d, s) { function go(){ var js, fjs = d.getElementsByTagName(s)[0], load = function(url, id) { if (d.getElementById(id)) {return;} js = d.createElement(s); js.src = url; js.id = id; fjs.parentNode.insertBefore(js, fjs); }; load('//connect.facebook.net/en/all.js#xfbml=1', 'fbjssdk'); load('https://apis.google.com/js/plusone.js', 'gplus1js'); load('//platform.twitter.com/widgets.js', 'tweetjs'); } if (w.addEventListener) { w.addEventListener("load", go, false); } else if (w.attachEvent) { w.attachEvent("onload",go); } }(window, document, 'script')); tweet Share