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Alexander Elder says that hedgers are the smart money today, and by inference speculators whether large or small are today's dumb money.
Also hedgers are almost always short, while speculators are almost always long.
Thus when hedgers are very short it is a bearish sign, but when hedgers are only somewhat short it is a very bullish sign.
When speculators are very long it is a bearish sign, but when speculators are only somewhat long it is a very bullish sign.
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