Warren Pies, an energy strategist at Ned Davis Research, says hedge funds are too bearish on oil compared with the fundamentals. Citing CFTC data, he says short positions make up more than 35% of the open interest of professional money managers, for only the sixth time since the 2014 crash.
But this time, Pies says in the call of the day, the fundamental data for oil—in inventories, refining margins and other key indicators—does not support the pile-up of shorts. If the economy does not enter recession, short positions could unwind quickly, he says.
cast a bearish pall on markets. While earnings season has been benign so far, after good results from the financial sector, sell-side analysts have begun to lower their estimates for 2020 earnings, according to BNP Paribas.
Order. ORDER. Looks like the U.S. is stuck paying as much attention to the never-ending Brexit process as the U.K. is, given this chart from The Market Ear, showing the close correlation between the S&P 500
On Tuesday night, U.K. Prime Minister Boris Johnson went one-for-two, as he won a vote on advancing his withdrawal agreement but lost a vote that would have wrapped up proceedings. The market is now waiting for the European Union to extend the U.K.’s departure date beyond Oct. 31.
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