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OI/Market *PIC*

The OI is close to flat indicating that yesterday’s move higher was likely due to short covering. The market spent sufficient time below 125.00 yesterday allowing commercials and other longs to purchase new contracts from systems funds that were selling new. The systems continued to sell for the rest of the day but the spec short covering was powerful enough to create a nice rally. Today we see more spec short covering and systems new selling. However, a penny to 2 above the present level of 128.50 the systems may very well reverse. Although I have been long, and will remain so, I am not necessarily overly enthusiastic about the near term. The Dec OI is relatively high, option expiration is next Friday and we all know that regardless of fundamentals, weather or currency considerations, the tremendous buying that has been taking place we will see on the upside as selling. The Arb has appreciated to 39.06 and the Real is softer as BRL is 3.1703 +.0163. As bond futures are sliding so is gold. China will be back in action on Monday.

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OI/Market *PIC*
Re: OI/Market
Re: OI/Market