The reality is that when BIG traders put on BIG size they have a reason for it and all the prognostications about what happens when they cover…is a waste of time…because these guys are driving the market and they cover when at lower prices…not higher ones…we recently established a new high in EURO shorts…contrary to popular belief this is NOT BULLISH in any shape of form at this point.
So the rule is: short the first bounce after Speculators and Institutions establish record short positions and do the reverse for longs.
