SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Classic TA Workplace -- Ignore unavailable to you. Want to Upgrade?


To: mishedlo who wrote (65756)2/8/2003 6:18:04 PM
From: skinowski  Read Replies (2) | Respond to of 209892
 
Wondering... For every long contract there must be a short. Commercials often enough are the ones who keep the markets going… if I want to short, they’ll buy it from me, and if I am long – they are the people from whom I’m buying. It would appear that traders are driving the market, and the "market makers" are mostly "accommodating" them.

If this is the case, than the commercials tend to be right NOT because they are smart money, but merely because they are forced to take the other side of the trades from money which is NOT smart – especially, when there is a consensus.

When commercials get less short it means that traders are getting less long, right? Can be, but I think not necessarily a bullish thing, unless it is an extreme. One more thing – on this chart, it appears that over time the total open interest has been declining. What can be made of that? Specs going broke or losing interest?

softwarenorth.net