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Private Equity Investor bets large on shorting Tech

CTC Capital Fund Management Group places large stake on behalf of long duration investments to the downside; specifically targeting Tech Sector and Nasdaq. The Nasdaq and S&P 500 has been on a move to the upside hitting new highs and recovering less than -2% from February all-time-highs in the year of 2020. As some would entail the move and consider it a Bull Rally – Fund Manager, Andrew Lim, indicates “This rally is not a new bull rally; it’s simply an attempt to recover back to all-time-highs”. In accordance to DARTS (Daily Average Revenue Trading) data across the largest brokerage firms in the U.S, over 50% of live trading is being done on the backend of retail trade, non-derivative. Firms are not taking part nor participating in buying; the other half is being derived by Dynamic Institutionalized hedging.

In the midst of a downturn, all sectors across the board are sold. During the month of March, many sectors lost in proximity from 9-50%. The monsters of tech, more specifically, your FANMAG names (Facebook, Apple, Netflix, Microsoft, Amazon, and Google, which make up 55% of overall 70% Nasdaq Market Cap) lost in total 10% leaving those names to be favorable upon retail trade and reason to believe the Nasdaq has outperformed the remaining major indexes. Names that par well during preferably downturn markets are often seen to be the best performers during uptrend markets. With this is mind, the Nasdaq index has been seen structuring new all-time-highs while the remaining market cap and S&P 500 has been lagging behind; with capital and money rotation occurring in-between the Financial and Energy sectors.

  • 64.8+ Million Americans within Home Forbearance
  • 28.4+ and counting newly filed jobless claims
  • Talks of a Vaccine but no vaccine underway
  • Rising Covid Death Counts and closure of reopening states
  • Small Businesses and profit margins not meeting forecasted sales prior to February
  • Small Businesses no longer reopened
  • US Dollar Devaluation and the Printing of Currency
  • The Federal Reserve Junk and Corporate Bond repurchasing
  • Missed Earnings and Quarterly revenues

These are but a few reasons as to why the markets according to CTC Fund management group attest the inability to fully continue higher. “If the premise was prior to the month of March we’ve attained a marketable high, after artificial movement within the markets from the March 23rd lows (i.e. emergency rate cuts, stimulus checks, junk bond buying, corporate bond buying, retail trading etc.) what would incline one to believe things have gotten any better?” in an interview with CTC Fund manager Andrew Lim. “Many speak on behalf of the Fed having all the ammunition to uphold markets…the fed keeps buying…they keep buying!… however, what if all the ammunition in the world is still yet to be enough for the markets?- The fed has also entailed it being a slow and long recovery. – The market was not listening in 2008 and they’re still not listening now”, closing out the interview with that last statement, NPR news.

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