Goldman Sachs has sounded the alarm bells, projecting that nearly $40 billion could be offloaded by trend-following hedge funds in global equities next week, after the S&P 500 dipped beneath the closely watched 6,725 level and closed at 6,642 on Wednesday. For context, these funds aren’t just trend chasers—they’re the market’s very own fitness trackers, moving billions based on daily price steps, trading volume heartbeats, and volatility pulse rates. Apparently, when the S&P 500’s “step count” moves below a certain line, it triggers a mass exodus worthy of a stampede at a Black Friday sale.
Market Signals and Hedge Fund Calculus
Goldman’s note to clients, read with the intensity usually reserved for emergency instructions, suggests that if stocks continue to stumble, the selling could balloon to $65 billion globally. Before this recent sell-off signal, these trend-followers were long a healthy $150 billion in global equities—like marathon runners happily pounding the pavement just before spotting storm clouds at mile twenty. The last great herd crossing was in October, with an encore back in April when former President Trump lobbed tariff proposals onto the economic highway, causing similar GPS recalculations in hedge fund land.
Systematic Selling and Comedic Timing
Trend-following hedge funds operate with a rigor that would embarrass most home fitness apps: buy high, sell low, and always consult the algorithm before eating breakfast. The current scenario, as mapped out by Goldman’s high-speed computers, is dance-by-numbers for billions in risk capital. Their signals, derived from market heartbeats and price velocity, could leave anything from blue-chip icons to penny-stock dreamers feeling a little winded by week’s end.
Notable Ripples and Historical Echoes
Of course, history has its own sense of humor. The market’s intrigue with round-number thresholds is reminiscent of baseball’s obsession with batting averages and the public’s fascination with celebrity birthdays. Why 6,725? Why not 6,724 or a nice, even 6,700? If only trend algorithms would tip the press off about which numbers they favor, perhaps market commentators could finally take a day off.
And in a year notable for trillion-dollar buybacks and techno-rally runs, Goldman’s warning serves as gentle advice to keep those seat belts fastened—even if you’re in first class. Because in the theater of modern equities, every dip and rally is just another act, and this week promises all the drama of a well-executed hedge fund ballet.
The Sources…
[1] HEDGE FLOW Goldman projects $40 billion stock selling scenario over the next week https://www.reuters.com/business/hedge-flow-goldman-projects-40-billion-stock-selling-scenario-over-next-week-2025-11-20/
[2] Goldman Projects $40 Billion Stock Selling Scenario Over the Next Week https://money.usnews.com/investing/news/articles/2025-11-20/goldman-projects-40-billion-stock-selling-scenario-over-the-next-week
[3] Goldman Sachs: Expects $40 billion in stock sell-off next week. https://www.bitget.com/news/detail/12560605074516
[4] Corporate America Unleashes Record Share Buybacks: A Trillion-Dollar Bet on Shareholder Value https://markets.financialcontent.com/stocks/article/marketminute-2025-11-20-corporate-america-unleashes-record-share-buybacks-a-trillion-dollar-bet-on-shareholder-value
[5] Goldman Sachs : Supplement – C-032115 https://www.marketscreener.com/news/goldman-sachs-supplement-c-032115-ce7d5eded18aff2c
[6] Trend-Following Hedge Funds Prepare Massive Stock Sell-Off https://finimize.com/content/trend-following-hedge-funds-prepare-massive-stock-sell-off
[7] My Current View Of The SP 500 Index: November 2025 (Technical Analysis) https://seekingalpha.com/article/4836757-my-current-view-of-the-sp-500-index-november-2025-technical-analysis
[8] Insider Sale: Chief Financial Officer of $TEM Sells 4,988 Shares https://www.quiverquant.com/news/Insider+Sale:+Chief+Financial+Officer+of+$TEM+Sells+4,988+Shares
[9] U.S. Equities Market Attributes October 2025 | S&P Dow Jones Indices https://www.spglobal.com/spdji/en/commentary/article/us-equities-market-attributes/
[10] These Hedge Funds Make Billions: Here’s What They’re Buying Now https://www.tikr.com/blog/these-hedge-funds-make-billions-heres-what-theyre-buying-now
[11] Goldman Sachs: Stock Sell-off Expected to Reach $40 Billion Next … https://lookonchain.com/feeds/37869
[12] Stock Market News, Nov. 20, 2025: Stock-Market Rebound Evaporates as AI Fears Resurface https://www.wsj.com/livecoverage/jobs-report-bls-september-stock-market-today-11-20-2025
[13] Top Fed official warns on risk hedge funds pose to $30tn Treasury market https://www.ft.com/content/754ef60f-bbbb-496c-9548-04cde2930730
[14] [Bitpush Daily News Highlights] Goldman Sachs: Stock sell-off expected to reach $40 billion next week; Jefferies report: Tether’s gold reserves reach 116 tons, making it one of the world’s largest non-sovereign gold holders; TechCrunch: Prediction market Kals https://www.bitget.com/news/detail/12560605074848
[15] Stocks close higher, snapping losing streak as Nvidia rebounds ahead of earnings report https://www.cnbc.com/2025/11/18/stock-market-today-live-updates.html
[16] Hedge Fund Indices, Databases and Performance Reports | HFR® https://www.hfr.com
[17] Goldman Sachs unveils stock market forecast through 2035 https://finance.yahoo.com/news/goldman-sachs-unveils-stock-market-170300483.html
[18] In the Rear View: How Did Our 2025 Themes Pan Out? https://www.jpmorgan.com/insights/markets-and-economy/top-market-takeaways/tmt-in-the-rear-view-how-did-our-2025-themes-pan-out
[19] HEDGE FLOW Funds cut consumer stocks to global pandemic lows, Goldman data shows https://www.reuters.com/business/finance/hedge-flow-funds-cut-consumer-stocks-global-pandemic-lows-goldman-data-shows-2025-11-10/
[20] November 2025 Stock Market Outlook: Where We See Investment Opportunities https://www.morningstar.com/stocks/november-2025-stock-market-outlook-where-we-see-investment-opportunities
