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Posted by Tango
on January 7, 2019, 9:30 am
The increasing OI indicates new buying and new selling. We can assume that managed money is doing the selling and the buying is likely commercial as the market traded down to 100.40 with possible index buying otherwise. Today we have had a steady market possibly propelled by a weak $ and continued index interest. As it approached the high it took a lot of selling which intensified as the market reached the high of 103.45. The market is now drifting lower. The potential for higher prices is present as the $ weakens, index continues to buy and the potential of put shorts covering increases. For now it appears that fund selling is in control in a quiet market. The arb traded close to 33 indicating a lagging RC. It is now 32.04. USDBRL is 3.7047 -.0107 -.26% and USDCOP is 3190.00 -1.65.