Money Managers Aggressively Buy Back Into Gold And Add Crude Shorts

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Includes: FXB, FXY, GLD, IEI, QQQ, SGG, SPY, TLT, USO
by: Free CoT Data

Summary

Bonds: Institutions added long exposure to the 30-year, hedge funds still very short the 5-year.

Commodities: Money managers piled back into gold, rotated out of crude, stayed very long sugar.

Currencies: Positioning within British pound futures is relatively muted ahead of the Brexit vote.

Stocks: Hedge funds reduced their short positions in both the Nasdaq and the S&P.

In a previous article, I outlined my approach for analyzing CoT data to reveal how different types of traders are positioned in the futures markets. If you missed it, give the article a read to see the method behind my analysis.

This is the 13th in a series of weekly updates that outlines how traders are positioned, and how that positioning has recently changed. I break down the updates by asset class, so let's get started.

Bonds

Institutional investors have been adding long exposure to the 30-year bond (NYSEARCA:TLT). Hedge funds remain extremely long.

Hedge funds are very short the 5-year (NYSEARCA:IEI), betting on higher short-term rates.

Commodities

Money managers bought back into gold futures last week (NYSEARCA:GLD).

In contrast, money managers were quick to put on shorts in WTI crude (NYSEARCA:USO).

Money managers are massively long sugar (NYSEARCA:SGG). They've stayed this long since early May. October 2013 and December 2015 are two previous periods where money managers reached this level of extreme long positioning. Both periods were followed by 15%+ declines in the price of sugar.

Currencies

Hedge funds covered a majority of their shorts in the British pound (NYSEARCA:FXB) earlier this year.

Hedge funds have been riding the trend in the Japanese yen (NYSEARCA:FXY). Their current positioning is similar to what it was like in the winter of 2011.

Stocks

Hedge funds and institutions are getting a tad more bullish on the Nasdaq (NASDAQ:QQQ), as positioning bounces up from a bearish extreme.

Finally, hedge funds rapidly reduced shorts last week in the S&P 500 (NYSEARCA:SPY).

If you've got any questions about CoT data, don't hesitate to ask me in the comments below.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.