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Focus on Fund Shorts
Posted by Tango
on August 7, 2019, 10:49 am, in reply to "Re: OI/Market
As we observe the COT we see that many funds have profoundly changed their tactics. Blind momentum selling is no longer on the menu. We see that at the top of the market, after funds covered shorts, 6 funds began selling. The following week 4 more funds began selling. Then, the week after, the COT shows an increase in shorts of 9,030 lots but without any increase in the number of funds going short.. For this COT marking period, the market was down 2.45 cents with an increase in the OI of 11,321 lots. The question for me is will the number of shorts in the MM category increase. If not, then it means that a handful of shorts have been aggressively selling, and are these funds now covering. Of course, the increase could be anyone. Letís see what Fridayís report reveals.