Having been trained well to BTFD in any and everything, after weeks of picking bottoms, clutching falling knives, and being run over, Bloomberg reports [4] hedge funds finally pulled back from bets on higher oil prices - reducing their net-long position in WTI crude for the first time in four weeks, cutting their holdings by 5% in the week ended Dec. 23. “Traders just said enough is enough,” Phil Flynn, a senior market analyst at the Price Futures Group in Chicago, said by phone. "They were tired of trying to guess the bottom of the market and missing. We don’t have a bottom yet and there’s still a ways to go."
As Bloomberg reports [4],
Speculators reduced their net-long position in West Texas Intermediate crude for the first time in four weeks, cutting their holdings by 5 percent in the week ended Dec. 23, Commodity Futures Trading Commission data showed yesterday. Long wagers dropped the most since August.
...
“Traders just said enough is enough,” Phil Flynn, a senior market analyst at the Price Futures Group in Chicago, said by phone. “They were tired of trying to guess the bottom of the market and missing. We don’t have a bottom yet and there’s still a ways to go.’”
...
The net-long position in WTI dropped by 10,784 contracts to 206,939 in the week ended Dec. 23, the report showed. Long positions fell 5.1 percent while shorts decreased 5.6 percent.
The report was delayed because of the Christmas holiday last week.
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It looks like there is a lot more pain to unwind yet...
[5]
As we've seen before...
[6]
Charts: Bloomberg
