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What historic hedge fund net-short position in commodities tells us

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For the first time Hedge funds have taken bearish positions on 24 commodities tracked weekly. It's an historic event which creates market conditions for a possible big bounce, according to Head of Commodity Strategy at Saxo Bank, Ole Hansen. 

Ole outlines what to watch for and how, for example, the oil price has rebounded on previous occasions. Earlier this year, when widespread shorts were set, the oil price was stretched to such an extent that changes in fundamentals or headlines triggered a bullish reaction; as much as 25% higher.