Short Squeeze, CTA Traders At Work In Iron Ore, Oil Surge

HFA Padded
Mark Melin
Published on
Updated on

With Iron Ore spiking nearly 17% today and the price of oil jumping the most in a week since last summer, up close to 5% on the day, one bank futures trade desk in London thinks they understand causation for these moves. This comes as the hand-wringing over long / short hedge funds with ill-timed long / short ratio management is considered in another bank report.

MS 3 7 long short vertical Iron Ore

CTA liquidity squeeze moving iron ore and oil markets, says bank analyst

Martin Glanville, Credit...

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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.