Funds Buying Lifts Futures to Recent Highs
After pushing the futures market lower into the weekend, the
bears were at it again early yesterday as they ushered the May
contract to its lowest level since last Wednesday. But selling
quickly dissipated, leaving the market exposed to unchecked buying.
The May contract finished up 4.5 cents at $2.169 after notching a
Floor traders said early selling was dominated by commercial
traders who already hold substantial short positions and were
looking to keep a lid on the market. Tom Saal of Miami-based
Pioneer Futures agreed and added that locals were also seen as
contributing to the downward price momentum. That, however was
about all the funds would allow, and after being somewhat quiet
last week they were seen as active buyers between 11 a.m. and 12
p.m. yesterday, Saal continued. "Once the market moved above
unchanged on the day, both commercials and funds began to cover
their morning short positions." May rallied from there, continuing
higher into the close.
"Funds were relentless buyers today," added Sandy Trot of New
York-based Trot Trading Corp. "This was a very good session and
even a better settlement for the bulls. [The market] is theirs to
take higher [Tuesday]. However, he warned that if the market is not
able to sustain the momentum he thinks profit taking could shuffle
prices lower in the near-term.
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