Fed Funds COT: Record-Scale Spec Buying Triggers Reversal Risk

Fed Funds speculators added 227,102 net longs in one week, reaching the 99th percentile of their 5-year range. That triggered a new Reversal risk (down). Why it matters: This is the most stretched speculative long among the 40 markets covered. It is mirrored by commercials at the opposite extreme. One-sided positioning raises the risk of a sharp unwind if the crowd changes its mind. Fed...