A rough ending to another rough week for the bulls. The bears may have reason to get excited as the indices start their move towards the bottom of the downward trending trade channel. After lots of commotion and new conferences and hearings and the like, ultimately there has been no sea change in the nation's economy or the global financial problems that are facing not just the US but Europe, Asia and other parts of the globe.
So Soros came out and said that the HF industry will be decimated. Yes, funds will shutter their doors and close as assets are pulled out due to poor performance. However, a good performing fund that employs prudent use of leverage and has rigid risk control guidelines in place will continue to gather assets and flourish. The great managers of the past decade may be turning over as a new breed of manager takes their place.
In other related global news, oil is now trading in the mid 50's. There were a lot of oil bulls out there that have gotten absolutely decimated with this oil sell-off.
Happy Friday.
DJIA 8,497.31 -337.94
NASDAQ 1,516.85 -79.85
SP500 873.29 -38.00
Labels: economy, funds, gossip, hedge funds, motivation, oil, technical analysis, trend following