Enlightening Commentary from a Trader at National Alliance

by Laura Ehrenberg-Chesler on October 16, 2014

in Energy,equity market,Foreign Markets,Hedge funds,Investment Strategies

My partners and I thought this was very helpful and insightful commentary on what is causing the action we are seeing in the markets. “So what is going on???? The way we see it, the margin clerks are in charge…this is liquidation, not orderly unwinds…It may have started in the oil space, but it is long term capital all over again….Hedge funds had similar trades on in oil, European equities, European peripherals, US equities …all levered…and until you reduce to where the margin clerks say you have to be it will continue….It always looks worse at the bottom, but it is too tough to call it in real time…but I sense we are close…It is usually in the middle of October. But with the lack

of street liquidity and reduced repo lines it is more difficult to figure it out….Stay loose, today looks like another volatile day”    

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