By now it should be a surprise to no one that there is an increasingly visible hand that decides at 330pm ET stocks need to be bought 'aggressively'. This phantom - and of course entirely efficient - savior of the markets has been dominating market performance since the Cyprus situation hotted up. It is as if a team of people were protecting the market from the plunge that Treasuries have been so clearly signaling in the last 3 weeks. We have shown the 'up-down-up' nature of the last 14 days but since the close on 3/14 (before Cyprus), the S&P 500 futures are down 5 points. In that same period, the cunning strategist who bought at 330ET and sold at the close (in S&P 500 futures) a stupendous 21.75 points (absent slippage of course) outperforming the market by 170bps (for an annualized outperformance of 26.6%) with no overnight margin payments and 30 minutes attention per day (just think of the leveraged performance!!). Of course we bring this to the attention of the reader because the farcical rhymthicity of the market's behavior is better in the light of day for all to enjoy than just Johhny-5 and his algo friends.
Since 3/14, S&P 500 Futures are -0.32% (-5 points), the 330RAMP Capital Fund is up 1.39% (+21.75 points); 9 winners (average 3.25 points) and 6 losers (average -1.25 points).
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and the actual movements in the 30 minutes that the 3:30 Ramp Capital fund would have traded...
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Of course, past performance is no promise of future expected return - though it seems in the case of the US equity market (or Japanese) that it is exactly what the bulk of the public is banking on as their investment thesis...
Charts: Bloomberg