Settles GFBP and More
Before we get into the settles and Magnelibra’s Global Futures Benchmark Program positions tracker, let’s look at a graphic that Danielle DiMartino Booth posted and was originally put out by Artemis Cap. Mgmt. The reason we want to post this chart is because we want our readers to understand just exactly why the markets can ignore fundamentals at least for a short while. Often we state that QE overwhelms any fundamentals, but QE also allows for the massive expansion of Options bets and this graphic highlights just how massive that market truly is. $20.03 Trillion can force a lot of flows and can be a lot harder to track and follow in regards to whose who and whose doing what, but one thing is very certain, its immense size can drive markets up and down and yes this is a side effect of QE and its continued propensity to fuel balance sheet and asymmetrical risk bets:
Ok as far as the settles for Monday October 26th:
You can see that the long end outperformed in the US Govt bond market as the BOB on thru to the FOB were flattened and have turned down from the recent bout of yield curve steepening.
Equities were hit pretty hard as the Dow lost 608 points, and the NQ was down a chunky 171.25 points proving once again the power of the 0.786 fib target reversal levels.
US Dollar also joined in the bond bullish fun as it traded back above the 93.00 area.
Crude and RBOB fell with the RBOB back below 1.10 which has proven to be a decent support area between 1.07 and 1.10.
Gold held up but Silver back down below $24.50.
Let’s now look at one of Magnelibra Econemotions proprietary charts, this one is the Dollar Value futures contract spread between a 2xR2k and Nasdaq, where the R2k continues to point to outperformance all in front of some big tech earnings this week:
As far as Magnelibra’s Global Futures Benchmark Program Positions Tracker, which is our proxy and specifically for newsletter Founding Subscribers we are including it in today’s letter. This positions tracker is our market trading sentiment and based of off Magnelibra’s proprietary trading model used for the CTA Program. This tracker can be used by investors or traders in order to track and emulate how Magnelibra navigates its markets that it follows. the GFBP positions tracker continues on in hedged short mode looking defensively into this years presidential election. We started this tracker for the newsletter in June and we include all the daily and monthly P+Ls
If any subscriber has any questions or wants a more in depth explanation before subscribing to receive this tracker daily, let us know. Founding subscribers also have our ear as we want to learn more about what it is you are trying to accomplish and how our 2 decades of experience can get you to where you want to be.
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-Magnelibra Econemotions
DISCLAIMER: For educational purposes only. This is not a solicitation to buy or sell commodity futures or options on neither commodity futures. The risk of trading securities, futures and options can be substantial and is not for everyone. Such investments may not be appropriate for the recipient. The valuation of futures and options may fluctuate, and, as a result, clients may lose more than their original investment. Nothing contained in this message may be construed as an express or an implied promise, guarantee or implication by, of, or from the author Michael Agne owner of Magnelibra Capital Advisors. All rights are reserved. We will never claim that you will profit or that losses can or will be limited in any manner whatsoever. Past performance is not necessarily indicative of future results. Although care has been taken to assure the accuracy, completeness and reliability of the information contained herein, we make no warranty, express or implied, or assume any legal liability or responsibility for the accuracy, completeness, reliability or usefulness of any information, product, service or process disclosed.