A SPECULATIVE FERVOR IN THE COMMODITY SPACE

Via David Rosenberg at Gluskin Sheff:

Moreover, look at the latest Commitment of Traders report at what has happened to the commodity complex.

• The speculative long interest in gold has risen since late August to a near-record 253,638 contracts;

• The speculative longs in oil have doubled to 208,726 contracts;

• For copper, the net non-commercial longs has tripled to 25,139 contracts;

• Meanwhile, there is a huge net short position in Treasury bonds on the Chicago Board of Trade of 25,240 contracts, and;

• The net longs on the euro has swelled on the Mercantile Exchange, to 35,879 contracts.

Lord help us if the U.S. dollar ever embarks on a countertrend rally — everything from credit, to stocks, to volatility, to commodities have become abnormally correlated to the greenback.

Source: Gluskin Sheff

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