Via David Rosenberg at Gluskin Sheff:
Moreover, look at the latest Commitment of Traders report at what has happened to the commodity complex.
- The speculative long interest in gold has risen since late August to a near-record 253,638 contracts;
- The speculative longs in oil have doubled to 208,726 contracts;
- For copper, the net non-commercial longs has tripled to 25,139 contracts;
- Meanwhile, there is a huge net short position in Treasury bonds on the Chicago Board of Trade of 25,240 contracts, and;
- The net longs on the euro has swelled on the Mercantile Exchange, to 35,879 contracts.
Lord help us if the U.S. dollar ever embarks on a countertrend rally — everything from credit, to stocks, to volatility, to commodities have become abnormally correlated to the greenback.
Source: Gluskin Sheff