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Posted by Tango
on December 4, 2019, 9:40 am
Increases in both markets continue but as we learned from the COT short covering by funds is concealed by spreads, and spreads are as a result of forward selling, in part. As we look the the OI report, we see activity in the forwards which probably represents origin selling both in the form of outright direct selling and EFPs. My feeling has been “watch out” also, as Nagual states in his RC chart. In fact I had bought some F 120.00 puts, expecting a correction. But, in reality, the market is holding firm and resilient to continued selling. Forward activity is light today. Possibly higher prices in KC and/or Real are needed. The arb is 59.93 without the market in general not changing much. March is presently 123.60. For this latest COT period, the OI is up 9,644 lots as the price has changed 6.95c. Mkt steady.