Commitments of Traders confirmed shift in Sentiment

Sat Oct18 (NY) by Anatoly Veltman - Chief Global Analyst - For the week 10/7->10/14, during which SP futures traveled 1006->837 and back 837->1002, the Net change was Long in Commercial category, while Short in Small Spec. We don't get any direct signal - as market entered consolidation and is no longer short-term stretched out. However, we note marked change in sentiment: 1. Small Specs now tend toward Short 2. VIX has risen substantially 3. Futures do not maintain premium at US close. So, as opposed to early October - when we could find little sign of short-term capitulation at 1100+ pricing - we can see plenty of that now at almost 200 lower pricing! There were few strong signals elsewhere. Of note only firming EUR, Gold and energy Commercial support . . . (to read the remainder of this article, please log in below.)