Commodity trading advisors continue to maintain sizable long positions across global equities, with gains in Japanese and European markets offsetting weakness in U.S. stocks, according to Bank of America. BofA analysts noted that trend-following funds remain in extended long positions, supported by strength in non-U.S. markets even as AI-related concerns weigh on American equities.

Bank of America warned that positioning remains stretched, with systematic global equity exposure across CTAs, risk parity and volatility-control strategies elevated versus the past five years. The bank estimates that in a down market, these strategies could trigger $117 billion in selling over the next week, compared to $11 billion in buying if markets remain flat. This asymmetric risk profile leaves flows particularly sensitive to market direction.

In U.S. equities, BofA identified key technical levels where long-position unwinds could begin, with stop-loss levels sitting less than 1.6% below Friday's close. The bank also noted increased CTA exposure to Treasurys as the 10-year yield fell below 4%, though positions remain only moderately long. In commodities, long gold positions added positively to CTA performance as futures rose, while trend followers continued adding to crude oil and natural gas longs after a fourth straight week of gains.