Exactly two weeks ago, CTAs around the globe went haywire, and collectively liquidated over $80 billion in global stocks on that infamous August 5th Monday morning, which sent the VIX just shy of 70 as VIX liquidity plunged to the lowest on record, and sparked a global selling cascade.
Well, a lot has changed since then, and as we documented last week, the forced CTA selling first ended last week, only to gradually turn to buying. But nobody expected what would happen next.
