The net changes on a weekly basis for commodity futures has been moving in a wide range. This goes hand in hand with the “risk” trade and confirms why correlations have been so high lately. Rushing in and rushing out has created an environment of panic as the crowd moves with a herd mentality.
With WTI Crude surpassing $100 last week, it was obviously a good time to take some profits. This is probably a good idea as the U.S. dollar may continue to appreciate against the Euro as European policymakers continue to drag their feet on every decision. Now Greece is refusing to sign an agreement related to the bailout funds as the New Democracy Party stated that their “word” is good enough.
“We think that we have done enough to convince our partners that our commitment is earnest and that a written document is out of the question,” said leader Andonis Samaras to representatives of the EU, European Central Bank and IMF.
(Bloomberg) — Hedge funds cut bullish commodity bets by the most in seven weeks on mounting concern that Europe’s debt crisis will restrain global economic growth and demand for raw materials.
Money managers reduced combined net-long positions across 18 U.S. futures and options by 10 percent to 754,558 contracts in the week ended Nov. 15, Commodity Futures Trading Commission data show. That’s the biggest decline since the seven days ended Sept. 27. Sugar wagers fell 30 percent, the most since December 2008, and bets on lower copper prices almost doubled.
Some addition COT report levels:
Total commitments and changes:
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