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COT Comment *PIC*

Greetings,

Latest COT brings us following changes:
- hedgers (in red) cut 4,400 longs and added 1,500 shorts. Net - 5,900 to the short side;
- non-hedgers (in orange) cut 200 longs and 7,800 shorts. Net - 7,600 to the long side;
- managed money (in yellow) added 3,000 longs and cut 7,000 shorts. Net - 10,000 to the long side.
7 funds joined bulls and 7 funds left bears.

Net position indexes show increases for non-hedgers and managed money while index of hedgers declined. Index of managed money has not left danger zone and stays not too far from extreme bearish readings.

OI index (in blue) dropped.

Market participation (in purple) changed lightly.

I see there is a lot of room for managed money to accumulate long positions. But I also see OI declining. Basic rule of price/OI relationship says that such situation is not bullish. Also, lack of action inn market participation tells me that hedgers are not stepping in actively nor speculators rushing for the exit. This is discouraging.

GL&GT.