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COT Comment *PIC*


Latest COT report is a cold shower for many of us. Changes:

- hedgers (in red) added 15,100 longs and 500 shorts. Net - 14,600 to the short side;
- non-hedgers (in orange) added 200 longs and 17,400 shorts. Net - 17,200 to the short side;
- managed money (in yellow) cut 2,300 longs and added 14,500 shorts. Net - 16,800 to the short side.
6 funds left bulls and 6 funds joined bears.

Net position indexes show that MM index refreshed its minimums again. However, index of hedgers hasn't seen extreme bullish readings yet. One can make a conclusion that it gives hedgers an edge to buy further while MM have amassed a huge position already. Every new short will only magnify a knee jerk reaction when time comes.

OI index (in blue) has demonstrated a big jump up - lots of new hedgers and speculators came out to play. Bad news for bulls here is a common wisdom - market is bearish when price falls and OI grows.
Market participation index (in purple) shows no changes - speculators hold more OI that normal and this is the thing that keeps market from changing direction.