Providing investors with a balanced perspective, Massif Capital

Massif Capital Research

Research focused on providing investors with a balanced perspective on the environmental and economic realities of achieving a carbon-neutral economy for businesses within the Energy, Basic Materials and Industrial industries

Providing investors with a balanced perspective

Real Asset Chartbook Week #12: Oil Price Volatility Continues, No End In Sight

Massif Capital

Research focused on providing investors with a balanced perspective on the environmental and economic realities of achieving a carbon-neutral economy for businesses within the Energy, Basic Materials and Industrial industries.

The Massif Capital Real Asset Strategy is a global long/short equity strategy built around bottom-up stock picking. We are focused on creating a portfolio of businesses from within the Energy, Basic Materials and Industrial sectors that balance the environmental and economic realities of achieving a carbon-neutral economy.

Macroeconomics

<ul><li>We will be very interested in what happens to the number of traders on the short side. With futures, small moves are magnified by leverage; as such, a significant move, like we are seeing today, is likely to have blown through various stop-out levels for traders.</li><li>In volatile markets, stops become self-fulfilling prophecies – tight clustering near technical levels turns minor rallies into cascading short squeezes. We expect that number of shorts to continue to fall.</li><li>If geopolitics is causing moves in the markets, we have to take a look at gold:</li></ul>

We will be very interested in what happens to the number of traders on the short side. With futures, small moves are magnified by leverage; as such, a significant move, like we are seeing today, is likely to have blown through various stop-out levels for traders.In volatile markets, stops become self-fulfilling prophecies – tight clustering near technical levels turns minor rallies into cascading short squeezes. We expect that number of shorts to continue to fall.If geopolitics is causing moves in the markets, we have to take a look at gold:

Real Asset Chartbook Week #11: Digging Deeper into the Charts