After a difficult start to the year, when most equity markets took a nosedive in January, trend followers enjoyed a strong rebound in February. U.S. equity indexes rallied to new highs, and some trend followers with a longer term outlook were able to take advantage of the move.
New trends in a number of markets heated up in February as well. These included a new breakout in Gold and Silver, Soybeans and a very strong move in Coffee that Turtle style traders have been able to exploit.
It was also notable that the three portfolios that I track, more than offset their January losses.
Given the geopolitical turmoil that is brewing, this may be the start of some big moves in such markets as currencies, interest rates, energy and gold. One interesting move I noted on Friday was the strength in the Swiss Franc, which acts as a safe haven currency at times.
Over the next week or so, I will report on the actual results of some of the major trend following CTA firms as they become available for the month of February.