Buckle Up

While the stock market crash since yesterday afternoon is what everyone is talking about, there is (as I’m constantly telling my mother), more than one ‘market’ out there, and looking at said markets, via Finviz and as of 10:20 AM, those markets (as in all of them) are going down are down an average of 2.82%… and don’t appear to be slowing their trajectory. A couple of interesting thoughts…

[Note: Past performance is not necessarily indicative of future results. Numbers below represent data at time of post composition.]

  • Copper – The metal is down 7.07% today, down over 25% from 2011 highs in February. Most multi market programs we follow are short Copper and loving this move.

  • Gold/Silver – Unlike Copper, Gold being down 4.26% and Silver being down 8.87% represents a sharp reversal of the uptrend, likely causing pain for some.
  • Wheat – The grain is down -2.16% today, but has also moved down on 11 out of 14 trading days in September, with an average daily move of -1.2%. Few managers are in this short trade.
  • Crude Oil – Black gold is down -5.16% today, despite its run back up to 90. Most mutli-market systematic have stayed short this market. It’s getting close to time to update our analysis of a trend following trade series
  • How low can we go? – For those of you who thought the days that followed the U.S. debt downgrade had formed a bottom for commodity prices, think again. We’re seeing new 2011 lows busting through the August 8th volatility spike lows in cocoa, palladium, the Australian Dollar, British Pound, Canadian Dollar and more. Whether they stick that way until the close is another question entirely.
  • Bonds – We’ve talked about this before, folks. Managed futures is in love with bonds, and despite all odds they are continuing to go higher, along with, it appears the U.S. dollar… (thanks Bernanke)

The day is really just getting started, and there’s no predicting what comes next. What we do know is that Clarke Capital’s programs and Quantum Leap appear to be doing well in this movement. Even FCI, in both their OSS and CPP programs, was able to correctly identify the downtrend, and are mostly short. Discretionary trader Mesirow was in the same camp. However, results are more mixed on the short-term side of things. Dominion, for example, is doing well, while Bouchard Capital is struggling. [Disclaimer: Past performance is not necessarily indicative of future results. Futures trading is complex and presents a risk of substantial losses.]

We’ll see where things stand when the dust settles. Until then, hang on tight- this could be a bumpy ride.

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Disclaimer
The performance data displayed herein is compiled from various sources, including BarclayHedge, and reports directly from the advisors. These performance figures should not be relied on independent of the individual advisor's disclosure document, which has important information regarding the method of calculation used, whether or not the performance includes proprietary results, and other important footnotes on the advisor's track record.

Benchmark index performance is for the constituents of that index only, and does not represent the entire universe of possible investments within that asset class. And further, that there can be limitations and biases to indices such as survivorship, self reporting, and instant history.

Managed futures accounts can subject to substantial charges for management and advisory fees. The numbers within this website include all such fees, but it may be necessary for those accounts that are subject to these charges to make substantial trading profits in the future to avoid depletion or exhaustion of their assets.

Investors interested in investing with a managed futures program (excepting those programs which are offered exclusively to qualified eligible persons as that term is defined by CFTC regulation 4.7) will be required to receive and sign off on a disclosure document in compliance with certain CFT rules The disclosure documents contains a complete description of the principal risk factors and each fee to be charged to your account by the CTA, as well as the composite performance of accounts under the CTA's management over at least the most recent five years. Investor interested in investing in any of the programs on this website are urged to carefully read these disclosure documents, including, but not limited to the performance information, before investing in any such programs.

Those investors who are qualified eligible persons as that term is defined by CFTC regulation 4.7 and interested in investing in a program exempt from having to provide a disclosure document and considered by the regulations to be sophisticated enough to understand the risks and be able to interpret the accuracy and completeness of any performance information on their own.

RCM receives a portion of the commodity brokerage commissions you pay in connection with your futures trading and/or a portion of the interest income (if any) earned on an account's assets. The listed manager may also pay RCM a portion of the fees they receive from accounts introduced to them by RCM.

See the full terms of use and risk disclaimer here.

Disclaimer
The performance data displayed herein is compiled from various sources, including BarclayHedge, and reports directly from the advisors. These performance figures should not be relied on independent of the individual advisor's disclosure document, which has important information regarding the method of calculation used, whether or not the performance includes proprietary results, and other important footnotes on the advisor's track record.

Benchmark index performance is for the constituents of that index only, and does not represent the entire universe of possible investments within that asset class. And further, that there can be limitations and biases to indices such as survivorship, self reporting, and instant history.

Managed futures accounts can subject to substantial charges for management and advisory fees. The numbers within this website include all such fees, but it may be necessary for those accounts that are subject to these charges to make substantial trading profits in the future to avoid depletion or exhaustion of their assets.

Investors interested in investing with a managed futures program (excepting those programs which are offered exclusively to qualified eligible persons as that term is defined by CFTC regulation 4.7) will be required to receive and sign off on a disclosure document in compliance with certain CFT rules The disclosure documents contains a complete description of the principal risk factors and each fee to be charged to your account by the CTA, as well as the composite performance of accounts under the CTA's management over at least the most recent five years. Investor interested in investing in any of the programs on this website are urged to carefully read these disclosure documents, including, but not limited to the performance information, before investing in any such programs.

Those investors who are qualified eligible persons as that term is defined by CFTC regulation 4.7 and interested in investing in a program exempt from having to provide a disclosure document and considered by the regulations to be sophisticated enough to understand the risks and be able to interpret the accuracy and completeness of any performance information on their own.

RCM receives a portion of the commodity brokerage commissions you pay in connection with your futures trading and/or a portion of the interest income (if any) earned on an account's assets. The listed manager may also pay RCM a portion of the fees they receive from accounts introduced to them by RCM.

See the full terms of use and risk disclaimer here.

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