BLUE LINE = BRLUSD

The COT Report shows the net position in a very volatile market. Considering that the market closed so strong for the COT period, we can conclude that commercials were sellers on the way up and buyers on the drops. Managed money were buyers as prices rose. The “number of traders” indicate a high concentration of long funds and few short funds. It is likely that today several of the long funds liquidated.

Today prices began in a positive tone, but, as typical of this market, higher prices attracted sellers. Have we seen the the very much predicted correction? Is a 17.25c drop from the highs enough to satisfy the shorts? The market did end up above 134.00 in the post close. If spreads are any indication, they stayed relatively firm. We will see what the market does tomorrow and decide if today was an elevator stop to lower floors or if this is the ground floor. Funds will be sellers but they no longer dictate prices like they once did.