• The squeeze is on
• Oil is a concern

I’ve been suggesting since June that the imbalance between the record long position of the commercial traders and the record short position of the large speculators, aka hedge funds, would likely resolve itself with a strong move to the upside as the hedge funds were forced to cover their shorts.

Yesterdays 50 basis point cut in both the Fed Funds and the discount rate is the catalyst for this short covering to begin. We will likely see a quick move to new highs as buy stops are hit and shorts scramble to cover.

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Posted by Michael Chapman at 12:00 PM PDT