/biz/ - Business & Finance

I was flipping through some charts and this one is a pretty decent display of the COT reports data and how the market really works. Notice how the different groups are positioned. See how the Producers and Commercials have most extreme net short positions as the highs are reached and then as it comes off the highs they cover their shorts and Open Interest decreases. Conversely see how the ManagedMoney and LargeSpeculators have extreme net long positions as the highs are reached and they decrease their longs as price declines.