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>
> Do you read the street as long or short right now given the big
> rise in OI. LDB suggests the street is short, but the rise in
> OI on the up day would suggest otherwise. Comments?
>
Larry,
You probably saw my follow-on post to Bob's...
It will be the most instructive and beneficial for you to learn what
is behind the scenes by doing your own analysis. Here's some
questions to consider:
What really is the "street" and why might they have directional bias.
What bias might they have had before that got them to where they
are now?
Are the "street's" actions a confirmation or a condemnation
of where they were before?
Most important of all, can you assure yourself that the action of
the "street" is a reliable predictor of price direction? Hmmmm?
On a more basic note, if open interest made the change that it did,
and price action moved as it did, what can you conclude overall?
Believe me, I am _helping_ you, not avoiding your question.
And don't forget: some of the biggest players who make up the
financial instruments crowd may want to act exactly the opposite of
a bond "holder". Also, there are transactions that can be done
with trading vehicles in many futures markets that may look like
"buying" when the true net effect is to short the market or bet on
limited upside. And the same in the other direction.
Makes it all very easy, doesn't it?
Cliff
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