Poor Chinese PMIS manufacture kicked the sale activity in copper, but the CTA sale activity in the vacuum of liquidity exacerbated the fall of algos on the track to sell more than -7% of their maximum size, senior commodity strategist Daniel Ghali.
Systematic sellers can accelerate copper decline
“Since China is the most acute source of purchase activity -just, the liquidity vacuum resulting from the upcoming holidays shows a significant risk for prices such as CTAs set to liquid their bronze in most situations for prices in the next few sessions.”
“Prices now have to rally only to prevent subsequent fluids. Even if a flat tape will force CTAs to renounce their remaining long ones, given the vacuum of liquidity, can result in noticeable falling in prices. In addition, a large downtape can lead to large size short extraction that can be total a behemoth -45% of the size”
