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Strategies & Market Trends : Dino's Bar & Grill

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To: Goose94 who wrote (20491)7/26/2016 2:21:23 PM
From: Goose94Read Replies (1) of 202405
 
Crude oil: Another phase of short selling. Oil seems to be entering another downturn, the depths of which are uncertain. The speculative positions of hedge funds and money managers have turned decidedly pessimistic, with the liquidation of long positions and the increase in shorts. And as Reuters notes, speculators have pushed the market into its fourth phase of a buildup in short positions since the downturn began two years ago. The speculative movements often provide clues into where the market is heading, as the liquidation of longs and the increase of shorts foretells a decline in oil prices. For now, speculators are pessimistic. On the other hand, the speculative movements have opened up an opportunity for traders to buy the dip – so pessimism today does not mean that negativity will continue.
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