GFBP Positions Tracker 6 17 20
Overall Markets Mixed
The Global Benchmark Futures Program position tracker stays within the Hedged Short Program. The markets didn’t move that much today and we are assuming options expiration in the equities is going to be on some people’s minds. Although we read that there isn’t much exposure around current level strikes, as Goldman noted there is a hefty $1.8 Trillion in SPX options set to expire Friday.
We continue to see the narrative press in Covid Cases rising, but we aren’t alarmed as the total testing is assuredly rising right along with it. Summer is here and UVC from the Sun has a way of cleansing mankind whether they like it or not, for those that don’t know what UVC is or for those scientific types that claim it doesn’t reach the surface, please, we know better, its measured daily now!
Anyway the markets being mixed here doesn’t change our narrative. We know sand is being pound here at the .618 in the SP and that ultimately we either continue on and press higher, or the more time spent will lead to a consolidation and perhaps a minor bit of confidence out of the sell side.
One chart we want to present is this 2xRussell vs the Nasdaq Futures, where we exhibit the outright dislocation and evaporation of confidence in the Russell and obvious favoritism tech heavy Nasdaq ($ Value chart)
Ok here is the GFBP position at close for 6/17/20 the only change is the roll in the energies from July to August:
Here are the daily settlements of the markets we cover:
Tavi Costa shared this chart today on LinkedIn and below is our response:
This is an obvious result of QE, for those that don't get it its simple, its the Pareto Distribution, when 20% own 80% of all the assets, well, why would anyone expect this trend NOT TO continue?
Logic dictates a widening disparity as time moves to the right. So when everyone clamors that Central Banks are failing, well look at it this way, depends on which side of the pond you are on and well from the looks of this chart its pretty obvious the global central banks are #Winning
Finally and without knowing the full details, We have to comment on the this, Tragic Trading Story of a boy from Naperville IL who tragically took his own life this week after learning his trading account was allegedly down some $700k. We aren’t sure what is going on with the risk tolerances at the brokerage and trading outfits for retail, but one thing I know as a professional, the majority of FCMs or Brokers have very strict limits on position size given a specific accounts margin and cash. Generally excessive risk would be deemed impossible in today’s heavily monitored trading firms. When we see stories like this its truly tragic and may have more to do with misunderstanding of what one is truly investing in. However if there is malfeasance on the exchange level or access point, then further probing needs to be had, because there is NO WAY an account size of 16k would be able to lose $700k. NOT TODAY, maybe in the past, but not anymore as everything is electronic and marked real time! The story is
We absolutely hate hearing stories like this and my condolences go out to the family.
-Magnelibra Econemotions
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