Falling prices and falling open interest: If price falls along with the above- average fall in open interest, it shows a very short- term bearishness
Falling prices and falling open interest: If price falls along with the above-average fall in open interest, it shows a very short-term bearishness
. Both go down as investors with long positions exit the market.
That leaves China, the uptick in US rigs and increased bearishness
among hedge funds and commodity banks as new information to explain the sudden plunge in prices.
Abeek Barua, chief economist at HDFC Bank, is not surprised by this change in fortunes given the dollar's bearishness
that has prevailed across markets.
"The market has shown sideways moves over the past two weeks and today's close indicates caution on further bearishness
in the offing," said Mac Sharaf's equity investment analyst Shiv Prakash in his daily note on the markets.
Foreign-brand small cars sold well in Japan last year, but this was more than offset by slow sales of others stemming from bearishness
in the wake of the Sept.
In the short term, bearishness
could drive LME aluminum prices down another $200 per ton, he predicted, but in the long-term, rampant pessimism and short-selling could be met with a "whipsaw" effect if some positive economic news shows that the market over-reacted to bad news.
Software group Sage might be worth a punt at 396p, despite the current bearishness
towards tech stocks.
In a report issued this week, Standard Chartered Bank said that a recent survey showed that 'Philippine clients exhibit the most bearishness
' as far as foreign exchange is concerned.
The US Energy Information Administration (EIA) kept its 2015 and 2016 domestic oil production expectations virtually unchanged from the previous month, underscoring sustained bearishness
that the slump in global prices will weigh on output amid the country's shale oil boom.
Carrying over bearishness
in New York overnight, the dollar fell below the 85 yen line for the first time in Tokyo since Japan intervened in the foreign exchange market last week.
"Stocks [on DFM] went higher on lower volumes initially, but later fell on bigger volumes indicating bearishness
," said Shiv Prakash, equity investment technical analyst, Mac Sharaf Securities in his daily report.