Managed Futures Update - GTA Group
End of week report - Friday November 7, 2008
Friday, November 7, 2008
The big question today concerns the market and the imminent potential sell-off. At the GTA Group, LLC we specialize in using pattern recognition across the circle of life consisting of bonds, stocks, commodities and FX. We look for patterns to appear across this horizon and then manage risk to enter the market on a multititude of confirming indicators.
In this case we are keenly watching the banking index and the very strong support around the 52.46-52.64 level. This represents a very important support area for the banks. As you can see, the S&P and the banks have been aligned nicely and our thesis is IF support is found at this level, then the S&P should bounce. Over in the FX world, you can see that on an intraday basis the Japanese Yen is still aligned nicely with the index and the S&P. Therefore, IF this level holds then selling JPY against the $$, EURO and the AUD could be a potential strategy.
We will be watching this level on the banking index and will trade around it after things have settled down.
Have a good weekend.
James Bartelloni
The GTA Group, LLC