DFVL - COT Blue: The Velocity Of Capitulation
On Friday, the CFTC posted its COT data for the first week in 2019. For crude oil, capitulation. For US Treasury bond futures, capitulation. In the latter financial market, unsurprisingly, the net market position utterly collapsed during December. From a relatively high (meaning market overall short) +58k contracts that last week in November when everyone piled into liquidity hedges, the updated estimate for the week of January 8 is -8k.
Total reversal.
The last time we saw one of this magnitude in UST futures was in the first few months of 2014. From late