Trend Following or Trend Manipulation?
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Trend following commodity futures trading as well as stock traders were villified last year as speculators. Even George Soros came out with the statement that the rampant rise of crude oil was due to speculators. Trend following commodity trading advisors are speculators but they do not manipulate trends. On of the main principles of trend following is that there is a trend to follow. Commodity traders surely can not start trends. Commodity traders are accused of throwing markets in disorder. As an example in Bloomberg news yesterday it was reported that The Commodity Futures Trading Commission ( CFTC) will announce plans to introduce curbs on speculation of commodities including energy.
Read the full article: http://myinvestorsplace.com/2009/07/07/trend-following-or-tr...
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