Short Sterling – December 2010
Comment: Soaring open interest in this contract, and steadily increasing across the board, suggests bankers are embracing the new reality of permanently (well almost) exceedingly low interest rates. The 26-day moving average limited the downside last week and the 9-day one did the same on Friday; another positive sign. Red Dec, and probably red June too, have a lot more upside potential, but this one does too. Expect a push up to new highs late this month. Strategy: Buy at 98.840 but only if