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US Oil Contract– Retail CFD traders are net-short the USOil
contract, which tracks the NYMEX WTI Crude Oil contract, and a contrarian view of trader sentiment acts as signal that oil prices
may continue higher. Indeed our data shows traders most recently turned net-short as USOil traded above $40 through
mid-April.
It serves to note that positioning has moderated somewhat since last week—long positions are
up 21 percent while short positions have fallen 18 percent. Yet 70 percent of total open positions in our sample remain short
USOil. Until we see a much more sustained shift towards crowd buying, we see little reason to change our bullish trading
bias.
See next currency section: S&P - S&P 500 Remains a Buy until this Changes
--- Written by David Rodriguez, Quantitative Strategist for
DailyFX.com
To receive the Speculative Sentiment Index and other reports from this author via
e-mail, sign up for his distribution list via this link.
Contact David via Twitter at http://www.twitter.com/DRodriguezFX
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