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| Ultimate goal = make money.
However I get to these points when funds are close to record net short, doesn’t mean can’t go further, but at contract lows why would any fund continue to hold short positions. Risk reward becomes skewed in a way of which I have too much risk and probably very little reward left.
They hope that when they unwind there is someone there to sell the other side of their buy, if not, it will tick up to find new sellers. If there is not we rally more. A short covering rally will only take us so far. IF the funds want to their position net long and very net long, the higher and faster price goes. I have no idea which it does. | |
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The Funds and their short positions?
