COT And WTI?

Regression analysis worthless?

I'm not a huge fan of regression analysis, but in this case I think this has some "contextual value". The 2nd-Order Polynomial R^2=0.87 going back to 2010. This is not a timing tool, it's purely a value tool. This, coupled with positioning data (COT), gives me a decent picture of market context. The current WTI price is cheap, relative to normalized inventories, and the specs have very little length.

h/t: JSG@UndervaluedOnG (thanks for the help!)

#wti #comparativeinventory #context #iea #crudeoil #oott

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