May 16, 2017
Capital Trading Group Daily Newsletter 5-16-2017
Stock Markets are steady to mixed this morning but only after both S&P 500 and NASDAQ set fresh new all-time record highs yesterday.
Stock markets are steady to mixed this morning but only after both the S&P 500 and Nasdaq set fresh new all-time record highs yesterday. A big winner coming into the week were 'tech companies" but there's a bit of uncertainty about what the “WannaCry” cyberattack could do if it spreads deeper into the space? Though the spread has slowed, there are concerns that another cybercriminal may be inspired to perfect the code used and launch an even more damaging attack. That would obviously give antivirus and other cyber-security related companies a good boost, but could create a drag for some of the other leading online companies. Bottom-line, we must continue to closely monitor the cyber attacking headlines!
Oil markets have gotten off to a strong start this week, following public announcements from Saudi Arabia and Russia that they both favor extending oil production cuts into the first quarter of 2018. Citigroup said yesterday they anticipate OPEC, Russia and other producers could even deepen production cuts later this month, saying there is a 60% to 70% chance they could cut production by another -300,000 to -500,000 barrels per month. Keep in mind OPEC’s next meeting is right around the corner on May 25th.
As for economic data here at home, investors are anxious to see the latest in U.S. Housing Starts. The report is expected to show that April Starts and Permits both saw modest gains. One big positive in the March report was a big jump in single-family home completions, which insiders are hoping to see continue as the low supply of new homes is holding the industry back from its full potential.
Industrial Production is also due out today. In Washington, the controversy surrounding President Trump’s dismissal of FBI Director James Comey continues. Deputy Attorney General Rod Rosenstein on Thursday will brief the full Senate on the matter. Rosenstein was in the spotlight last week when a letter he sent was held up as the reason Trump fired Comey, however Trump later countered that idea saying he was going to fire him no matter what. Rosenstein also was rumored to have threatened to quit amid Comey’s firing, though Rosenstein later denied the claim.
Finally, we will decidedly end our notes with our reaffirmation of the growing need for alternative strategies. We would like to think that our alternative view on markets is consistent with our preference for alternative risk and alpha driven strategies. Alternatives offer the investor a unique opportunity at non correlated returns and overall risk diversification. We believe combining traditional strategies with an alternative solution gives an investor a well-rounded approach to managing their long term portfolio.
Contact Our CTG Alternatives Specialist Today!
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With the growing concentration of risk involved in passive index funds, with newly created artificial intelligence led investing and overall market illiquidity in times of market stress, alternatives can offset some of these risks.
It is our goal to keep you abreast of all the growing market risks as well as keep you aligned with potential alternative strategies to combat such risks. We hope you stay the course with us, ask more questions and become accustomed to looking at the markets from the same scope we do. Feel free to point out any inconsistencies, any questions that relate to the topics we talk about or even suggest certain markets that you may want more color upon.
Capital Trading Group, LLLP ("CTG") is an investment firm that believes safety and trust are the two most sought after attributes among investors and money managers alike. For over 30 years we have built our business and reputation in efforts to mitigate risk through diversification. We forge long-term
relationships with both investors and money managers otherwise known as Commodity Trading Advisors (CTAs).
We are a firm with an important distinction: It is our belief that building strong relationships require
more than offering a well-rounded set of investment vehicles; a first-hand understanding of the instruments and the organization behind those instruments is needed as well.
Futures trading is speculative and involves the potential loss of investment. Past results are not
necessarily indicative of future results. Futures trading is not suitable for all investors.
Nell Sloane, Capital Trading Group, LLLP is not affiliated with nor do they endorse, sponsor, or recommend any product or service advertised herein, unless otherwise specifically noted.