Please see the comments on the chart below as this drop in open interest is a reason for a bit of caution in approaching this market. As long as the shorts cover, prices will move higher but one has to be careful to watch for when they might finish up covering.
A push through $50 will force more of this short covering and should attract more buying from the general public but the managed money is still a net seller for the last four weeks. Again - caution is warranted especially with the big hike in margins.
"When misguided public opinion honors what is despicable and despises what is honorable, punishes virtue and rewards vice, encourages what is harmful and discourages what is useful, applauds falsehood and smothers truth under indifference or insult, a nation turns its back on progress and can be restored only by the terrible lessons of catastrophe." … Frederic Bastiat
Evil talks about tolerance only when it’s weak. When it gains the upper hand, its vanity always requires the destruction of the good and the innocent, because the example of good and innocent lives is an ongoing witness against it. So it always has been. So it always will be. And America has no special immunity to becoming an enemy of its own founding beliefs about human freedom, human dignity, the limited power of the state, and the sovereignty of God. – Archbishop Chaput
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