Goldman’s top derivatives trader warns bulls that market flows tell a different story

Goldman Sachs equity derivatives specialist Cullen Morgan just dropped a note that should make anyone riding the current rally a little uncomfortable. The message was simple: flows were more “gross down” than “net up.” In English: while net market returns looked positive, the underlying trading activity showed more sellers than the surface suggested. What Morgan actually said Morgan, a Vice President and equity derivatives and flows specialist at Goldman Sachs, issued the cautionary note on August 3. His core observation was that recent market gains are potentially misleading because they obscure significant weaknesses in actual trading flows. Morgan has built his reputation tracking derivatives positions and client flows. His previous analyses have covered Commodity Trading Advisor positioning, or CTA positioning, which refers to systematic, algorithm-driven funds that follow momentum and trend signals across asset classes. In prior notes spanning from 2024 through 2026, Morgan has flagged that CTA long equity exposure sat in the 94th percentile. Morgan’s estimates of potential CTA sales ranged from $1.2 billion to $32 billion depending on the market scenario. The gross vs. net il...