July 2016

The 2016 SALT Conference is in the books, and investors will look at the rest of the year to determine whether the prognostications of the hedge fund industry’s top experts will come true or not. No shortage of headline and punchy quotes accompanied the hedge fund sector’s “Spring Break” in Las Vegas.
Ask a random group of people on the street what they know about trading in the financial or derivatives markets and they will more than likely reply with the standard “buy low and sell high.” While this age-old saying is technically and partially correct, historically, attempts by investors to pick tops and bottoms have more often than not ended in tears.
There is no doubt that 2015 was the year of the “FANG”: Facebook (FB), Amazon (AMZN), Netflix (NFLX) and Google (GOOG), are widely followed and the best-performing stocks in recent history. While they all play in the internet space, grouping them together is a stretch.
The advantage of using technical indicators is their efficiency and precision of signals. However, the challenge to systematic traders occurs when fundamental forces change. Ultimately, price patterns reflect fundamentals such as economic growth, interest rate changes and inflation.
One of the more depressing trends in the futures industry during recent years has been the decline in futures commission merchants (FCM).