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COT Comment *PIC*

Merry Christmas All,

It was another week of speculators selling and producers buying. Changes:
- hedgers (in red) added 3,100 longs and cut 3,400 shorts. Net - 6,400 to the long side;
- non-hedgers (in orange) cut 3,200 longs and added 3,700 shorts. Net 6,900 to the short side;
- managed money (in yellow) cut 700 longs and added 4,100 shorts. Net - 4,800 to the short side.
7 funds joined bulls and 4 funds left bears.

Net position indexes show that Managed Money refreshed annual and 3 year minimums again. So did non-hedgers sector in general. However, hedgers are not extremely bullish yet. Which means there is further room for a run down although I would not expect huge moves down. Market has been down enough.

OI index (in blue) did not change. Nor did market participation (in purple) - balance of forces remains the same, with speculators being more active than they normally used to.

Technical picture points at further decline, possibly to 115 area. Market was there back in June.

GL&GT.