Mathematics also confirms a market in transition. The subtle downward shift of the regression line within the scatter plot of price change to the composition of leveraged money flows represents the decay in the paper control (see chart below). Connected interests, while still influential in setting price, are slowly losing their ability to play the heavy hand during speculative up phases.
Scatter Plot: Net Long As % of Open Interest (NL%OI) for Commercial Traders vs 6-Week Natural Logarithmic Change in POG Since 2002
