Oil Bulls Have One Last Hope: The Journalist Contrarian Indicator

Oil Bulls Have One Last Hope: The Journalist Contrarian Indicator

Ok, so it probably doesn't say anything good about sentiment when money managers just cut their net long position in Brent and WTI to the least bullish in nearly 11 months. It also doesn't say much for sentiment when short-only positions just rose 48,661 lots to 377,891, the highest in almost 11 months. According to CFTC data, the ratio of long to short positions is now roughly 2:1, versus 12:1 in February. “The bears are not going into hibernation yet. They’re still hungry," Rob Thummel
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One thought on “Oil Bulls Have One Last Hope: The Journalist Contrarian Indicator

  1. The big consensus is accelerating GDP growth globally. And it is put forth by economists and a derivative optimistic mood. It seems to me that the largest market in the world knows better. And….oil should correlate with lower rates. Couple that with big denial about the China situation and a FED remorseful of becoming a backstop for PE expansion, and the outcomes seem predictable. And maybe the FED sees a bursting equity bubble as being psychologically alleviated by a FED that can ease. And maybe all that is psychology anyway? So let’s “normalize” rates to ease when the inevitable comes, and just maybe people will have confidence in the incredible FED rather than one that lost credibility. The fix? Concentration of wealth is alleviated by an every 50 year or so wealth tax. Nothing is ever easy. The fix will never happen.

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