A report today in the FT about liquidations at the hedge fund giant MAN Group are a reminder why the market cannot rally despite many good reasons. There are liquidations and margin calls occurring on a daily basis.

There are many positives such as the increased bearishness today in the Investors Intelligence survey, very heavy put buying, rebalancing and positive seasonality but the margin clerk trumps them all.

I find catalysts like liquidations harder to quantify so I trade off of those that I can quantify. I remain positive but am also aware of the dangers, which keeps me from getting as aggressive as I would like to.


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