Position sizes remain modest – TDS

Signs of extreme upside asymmetry are emerging in Platinum, notes TDS Senior Commodity Strategist Daniel Ghali.

Price reversals can trigger CTA buying activity

“Even a small price reversal can now trigger massive CTA buying activity in platinum markets, with CTAs potentially adding up to +60% of their peak size in the following week in this scenario. A flat band won’t be enough to trigger a blip in CTA positioning, suggesting another cohort will have to raise prices first.”

“Discretionary traders are net short, but position sizes remain modest, suggesting little support from this cohort on the horizon. However, a substantial increase in SGE platinum volumes amid falling prices suggests that buyers have emerged in the physical markets.”