CFTC (and other) data has been showing leveraged players long risk, and large, for an extended period of time
The equity market sell off on Monday is weighing on leveraged players still and may well have further to run ... that's a view of at least one big player:
Some CTA have undoubtedly had to unwind risk positions, market moves in evidence of this:
- lower EUR
- renewed equity market selling
- lower AUD
- higher USD
- lower oil
- lower copper
And higher USTs (price) ... though this has pared back since Monday. This is 'flight to quality' response ... i.e. get your money out of risk and park it safe while looking for the next trend.
The question is, of course, how much more are still to sell? I haven't an answer but I suspect there is more to come indeed.
