As is standard given CFTC's Commitments of Traders reports run from Tuesday to Tuesday, Wednesday is the first positioning day of the week for Watson.
The overnight session was largely uneventful, at least compared to what has been happening, as algorithms wait for the next statement/action, real or not, from the US administration.
Grains were in the green to start another day, with the spotlight on continued short-covering by Watson in the Wheat sub-sector.
Morning Summary: We’ve reached another Wednesday, the first day of the new positioning week for Watson. What does this mean? As I’m getting accustomed to saying again, similar to between 2016 and 2020, I don’t know. It all depends on what today’s attempts at market manipulation – I mean executive orders – turn out to be. I’ve seen stories, from reliable sources, of who profited from the recent game of tariffs – both announced and delayed – and the ripple effects seen on crypto currencies, of all things. But as I’ve said so many times over the past two weeks, it simply doesn’t matter anymore. As for markets, the US dollar index ($DXY) was weaker through early Wednesday morning with buyers still showing interest in precious metals. April gold (GCJ25) rallied as much as $22.30 (0.8%) and March silver (SIH25) 13.8 cents (0.4%) overnight. Meanwhile, the Energies sector was in the red across the board pre-dawn. I’ll give you four guesses as to which market led the way, and the first three don’t count. That’s right, our old friend natural gas (NGH25) lost as much as 9.0 cents (2.8%) and was still sitting 5.4 cents (1.7%) lower at this writing. As for Softs, most markets were in the green while cocoa continued to slide lower.
