Fund managers dont hold overnight poistions today for 1 simple reason. when audited open positions also come with margin requirements. Those margins are deducted from your capital as unrealised.
You are paid on realised returns.
Mutual funds are quarterly and tend to be natural buyers on the end of month as they know what money will be avaliable over the first 2 days of the month.
Dont expect EVERY NUANCE to get hit precisely , but this should offer some guidance
short term attempts to rally Dec 1st & 2nd should be met with resistance and a further sell off on the 3rd to 7th
ReplyDeleteJay
Thanks Jay
ReplyDeleteWhats ur opinion fund managers buying today for tomorrow.
Fund managers dont hold overnight poistions today for 1 simple reason. when audited open positions also come with margin requirements.
ReplyDeleteThose margins are deducted from your capital as unrealised.
You are paid on realised returns.
Mutual funds are quarterly and tend to be natural buyers on the end of month as they know what money will be avaliable over the first 2 days of the month.
Jay - I tend to think WED (12/1) will close above 11/30 close. WED tend to reflect the opposite of what happens on MON/TUE. Just an observations.
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