We get grain numbers out today. We’ve had a grinding 2 dollar rally in old crop beans, 1 dollar rally in old crop corn and wheat.. Open interest has dropped on this rally, meaning its been shorts covering and exiting the open interest. A market rallying on declining open interest is not a sign of an underlying market trend that has legs. Instead, it is more of a relief rally as traders with loser’s on reluctantly exit.
We recently read of a large HFT fund liquidate after an 11 million dollar debit.
Considering that they probably began the year with 15 to 20 million […]