With equities appearing to reach a point of algo exhaustion and the dovish message from Janet Yellen being tempered by an increasingly hawkish tone from the U.S. Federal Reserve on interest rates, the extent of the stock market rally could be about to slow or potentially reverse. It is against this forward looking market view that JPMorgan’s Prime Brokerage Weekly Hedge Fund Snapshot looks back and sees increased leverage with increased net covering. Likewise, Credit Suisse’s global hedge fund bulletin notes that the “seven-week-long dump of crowded positions at relative value and quant firms (is) over” and a momentum factor is…
Prime Brokers: Stocks In Resistance Zone As Algo Exhaustion Can't Maintain Market Firmness
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.