The Ominous "Other": Record Bearish Liquidation Is Misery For The Bears

Even as resilient US macroeconomic data powering a continued rebound in US equities, non-Dealers sold another boatload of S&P 500 futures in the past week, and as Goldman's derivatives trader Robert Wuinn writes in his latest Futures recap note, the weekly Commitment of Traders report covering flows from April 29th - May 6th, exhibited $17.1bn of Non-Dealer net selling.  Taking a closer look, the "Other" category dominated, capping a nearly unprecedented stretch of liquidation; and yet the resultant level of Other gross longs still remains elevated. Therefore absent consistent demand elsewhere, ongoing normalization in Other presents a headwind for Non-Dealer net length. Meanwhile, Quinn notes that over the next few sessions, and ahead of crucial trade negotiations between the US and China, some broader support finally manifested.  

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