Marc to Market: Speculative Positioning before the Reversal

The latest Commitment of Traders report that covers the four sessions through January 19 saw speculators anticipating the continuation of the current moves. Of the sixteen gross positions we track, only five were in reducing exposures. Last week there was only six increased exposures. With the benefit of hindsight, we know that something changed a day or two after the reporting period ended. Given the magnitude of the reversal in some cases, some of these late positions were likely forced out. There were two .....