Argyle

'Index Speculators' Responsible For Commodity Prices?

Color me ignorant, but it seems one of Masters' statements just plain doesn't add up. In his testimony he says

"There is a crucial distinction between Traditional Speculators and Index Speculators: Traditional Speculators provide liquidity by both buying and selling futures. Index Speculators buy futures and then roll their positions by buying calendar spreads. They never sell."

If you buy a calendar spread you have effectively taken both a long and a short position, else no spread. Saying they never sell may be correct on some level, but ultimately, when you need to be both long and short in order to create a spread, saying you never sold seems a distinction without a difference.