The maniacal markets of late – down 333 points on the Dow Jones Industrial Average in late morning trading — have seen wide swings, testing liquidity levels with downside deviation significantly more a factor in risk management formulas.[1] While many analysts are sanguine, pointing to sentiment readings that say a blow off market top is not yet in the cards, however. But is there a more nuanced and potentially seismic shift taking place as rates rise. [klarman] While forward-looking earnings and economic benefits from Trump tax cuts appear to be financial gasoline… There are several sides to this odd market…
Are Maniacal Markets In The Middle of a Seismic Shift?
Mark Melin
Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.