Been warning about the potential of a rally like yesterday for a few days and the storage report provided the fuse for ignition. Look at the CFTC report action of the Managed Money Short position as they gained over the last few weeks.
Daily Continuous with CFTC Speculative Short Position
It is not surprising that while total open interest has been declining, the speculative shorts have now established at over 22% (last report June 28) of the total open interest. Where do prices go from here– unknown– but the rally is unlikely to end immediately and may start to define the high side of an upcoming summer range.
