All hedge fund indices outperformed the S&P 500 last week, with CTAs at the top with a return of 1.7%, according to Bank of America Merrill Lynch’s Hedge Fund Monitor. The diversified hedge fund index was up 0.4% last week, while the S&P 500 was down 1.5% on a price returns basis.
Wide triple-digit price gyrations in equities last week left investors "scratching their heads." The back and forth economic and geopolitical data and news prompts almost immediate reaction in the markets.
After a strong rally from mid-January, thanks in part to the actions of the European Central Bank, the FTSE is now consolidating near the multi-year resistance hurdle of 6900. The consolidation near this 6900 barrier does not surprise us; after all, this is not the first time we have seen the market hesitate here.