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Posted by Tango
on January 10, 2019, 9:46 am
We again see a flat OI with decreases in March and increases in the forwards. The spread volume is elevated relative to the total OI but a good chunk of it is attributed to forward buying matched with front selling. There are several things going on in the OI. July is down today while its wings are up possibly to switch activity. March is down indicating short covering and long liquidation which is likely funds buying from commercials and other longs. The index funds are buying new and thereby offsetting the front liquidation and making the OI unchanged. Today we have a weak market that hit bottom where bids intensified. 102.50 is the next strike but this area may be a technical support area as well. Possibly JuanV will address this point. Spreads continue to be on the defensive.