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The Spec EUR Herd Falls Into The Trap, As 10 Year UST Longs Peak, Flattening Bets Reappear

Tyler Durden's picture


The most recent CFTC Commitment of Traders report is out. As usual the most interesting data can be found in the FX spec update which does not disappoint. Just as we predicted, as the EUR surged over the past 14 days so did non-commercial net specs. The number which is through Tuesday, probably increased even as the EUR got hammered over the past 24 hours, dropping 250 pips in two days. Expect the usual piling out through the front door as specs bail once again. At that point the time to buy the EUR will come. Of the other two major pairs, the USD and the JPY, the Yen increased in long exposure while the Dollar saw the first decline in 8 weeks: just in time for the USD to jump once again.

Looking at the other interesting category, the distribution of appetite across the bond curve, we see the 5 Year net bullish sentiment decline for the first time from near record highs. The same with the 2 Year. Both of these were modestly offset by a substantial short covering at the long end, as speculators apparently bet modestly on a 2/30 and 5/30 flattening over the past week.

What is interesting is that the Net Interest in Nymex Natgas has jumped to a record. While not directly related at all to the recent shenanigans we exposed first with the berserk natgas algo, this is something to keep track of.

Lastly, for a complete interactive chart for all other commodities, click on the chart below for an extended updated analysis by Reuters.


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Fri, 06/10/2011 - 15:56 | Link to Comment Concentrated po...
Concentrated power has always been the enemy of liberty.'s picture

i'm long 'lies from leaders' from 400.  i'm short 'objections from the plebes'. 

Fri, 06/10/2011 - 16:01 | Link to Comment SheepDog-One
SheepDog-One's picture

Im long molotov cocktails.

Fri, 06/10/2011 - 19:35 | Link to Comment bob resurrected
bob resurrected's picture

Get a job.

Fri, 06/10/2011 - 19:48 | Link to Comment JPG101
JPG101's picture

Making cocktails?

Fri, 06/10/2011 - 16:04 | Link to Comment duncecap rack
duncecap rack's picture

Don't forget to go 3x short justice for wall street criminals

Fri, 06/10/2011 - 16:04 | Link to Comment Concentrated po...
Concentrated power has always been the enemy of liberty.'s picture

good call, but i hear there's tracking error.  can i buy an ETN?

Fri, 06/10/2011 - 15:58 | Link to Comment monopoly
monopoly's picture

Dollar looks good here for a while. Not betting against it yet. Great charts Tyler. Thanks, as always. We are closing at the lows. Monday going to be interesting. And, if another PIGG blows up this weekend a rush to the worthless dollar will continue.

What a crock this all is but protect your capital if you do not short.

Fri, 06/10/2011 - 20:08 | Link to Comment Vampyroteuthis ...
Vampyroteuthis infernalis's picture

The USD may be trash, but the Euro smells even worst. The movements out the USD are speculators going to oversees markets. The carry trade will quickly reverse.

Fri, 06/10/2011 - 15:55 | Link to Comment monopoly
monopoly's picture

Break downs every where. Tough to keep up,.

Fri, 06/10/2011 - 16:04 | Link to Comment JohnG
JohnG's picture

Finally.  Commence heavy drinking. 

Fri, 06/10/2011 - 16:06 | Link to Comment mynhair
mynhair's picture

Too late.


Fri, 06/10/2011 - 16:03 | Link to Comment johngaltfla
johngaltfla's picture

You stopped? Heck, this is an awesome event for shorts.....celebratory drinking time.

Fri, 06/10/2011 - 16:05 | Link to Comment mynhair
mynhair's picture

Awesome only if you didn't have a trailing stop.

Fri, 06/10/2011 - 16:13 | Link to Comment HelluvaEngineer
HelluvaEngineer's picture

Haven't you learned that lesson by now?

Fri, 06/10/2011 - 16:18 | Link to Comment mynhair
mynhair's picture

At least a '+' resulted.  Jumped into TZA afterwards.

Tracking error is only bad if held for 2 or more days - that I learned.

Fri, 06/10/2011 - 16:13 | Link to Comment JohnG
JohnG's picture

No stops got hit...yet.  Prolly Monday?  Dunno.

SPXU had a fine week though.

Just don't like shorting all that much.  Have to get used to it or get out I guess.

Fri, 06/10/2011 - 16:07 | Link to Comment TruthInSunshine
TruthInSunshine's picture

Nothing like global risk aversion to let Beranklecide try and deftly tip toe out of the treasury auctions.

Fri, 06/10/2011 - 16:03 | Link to Comment Boston
Boston's picture

Treasury chart legend is cut off?

Fri, 06/10/2011 - 16:08 | Link to Comment alien-IQ
alien-IQ's picture

today was an absolute BLAST! I love days like this...MORE MORE MORE!!!!!!

"it was gorgeousness and gorgeousity made flesh..."

Fri, 06/10/2011 - 16:17 | Link to Comment wombats
wombats's picture

Is this good news for PM investors?

Fri, 06/10/2011 - 16:18 | Link to Comment mynhair
mynhair's picture

Of course, it's now more cheeper than Weiner!  (bursts into song)

Jeepers, cheepers, where'd you get those Spys?

Fri, 06/10/2011 - 16:59 | Link to Comment buzzsaw99
buzzsaw99's picture

Weiner had an unfortunate shmelting accident.

itsy bitsy spyder climbed up the liquidity spout. Along came reality and washed the spyder out...

Sat, 06/11/2011 - 01:50 | Link to Comment HungrySeagull
HungrySeagull's picture

Itsy bitsy spider builds a web in the house closet only to be smashed by the levithan bullion as it drops from the big sky.

Fri, 06/10/2011 - 16:56 | Link to Comment oogs66
oogs66's picture

I can't remember, is Goldman positive or negative on the Euro?  Or both?

Sat, 06/11/2011 - 10:39 | Link to Comment ZeroPower
ZeroPower's picture

NatGas very interesting indeed. Its been a dead asset since the crash, but some smart money believes after this summer is over it'll finally break out as the glut of supply is finally starting to go in the opposite direction of demand!

Sun, 06/12/2011 - 07:14 | Link to Comment MrTrader
MrTrader's picture

Interesting how net EUR spec positions should be USD supportive. Where in the world has ZEROHEDGE learnt this interpretation? Primary school? Maybe some members should go back to school - again ;=)

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