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The market had an amazing day, with the Dow gaining 277 points and the NASDAQ gaining 3.0%.So, good day for a lot of hedge funds/traders as they close out Q2?
Yes, for some, but for a lot today was a disaster.
That’s because, according to the CFTC, on net, speculators really mis-positioned themselves for today.
So for example, according to Reuters’ analysis of the data, speculators slashed their gold and silver longs, and boosted their copper shorts.
But copper was up 5% today (shorts got creamed) and gold and silver both had huge days (bad timing for those who slashed their longs).
And according to ForexLive, traders boosted their shorts on the Euro, meaning they got crushed on today’s big euro surge.
For vanilla long investors today was a great end to a solid quarter. For a lot of speculators, today was a cruel end.
And in fact, this explains in part the ferocity of today’s move, as the progress in Europe collided with speculators who were wildly negative. Short squeeze.