Trade With The Funds
The Commitment of Traders Reports (COT) can yield
clues about what the big commodity funds are doing and keep you trading on
the same side of the market as some of the most dominant players. The COT
comes out two times a month and is available on the TradingMarkets Futures
Indicators Page. You can get analysis of the twice-monthly COT by
checking into TradingMarkets Pre-Opening
Outlook.
Livestock futures got slaughtered today, with live cattle hitting new
contract lows and pork bellies hitting limit-down levels. The Pre-Opening
Outlook pointed out that “The Commitment-of-Traders report with options
showed massive long liquidation of the fund trader to a net long of only
1100 contracts. Funds are likely to be building a net short position by
now.”
Going the other way in different setup, 10-year notes
(
TYZ1 |
Quote |
Chart |
News |
PowerRating),
from the Pullback From Highs List,
triggered after trading above the high of the low bar in the pullback and
traded to a gain of 14/32 before closing up 6/32 at 107 31/32.
Similarly,
euro FX futures
(
ECZ1 |
Quote |
Chart |
News |
PowerRating) made good on their Pullback From Highs
setup, closing up .0066 at .92070.
Also, from the
Implosion-5 List, November crude oil
(
CLX1 |
Quote |
Chart |
News |
PowerRating),
after its worst plunge in a decade yesterday, continued its downward
path to make good on an Off The Blocks short. Now deeply oversold and
trading at an 18-month low, this contract appeared to put in an intraday
double bottom and has rising lows off the 21.25 low-point, signaling a
possible rebound. Basis November has tanked as much as $8 a barrel
in just six trading sessions.
October sugar
(
SBV1 |
Quote |
Chart |
News |
PowerRating) also hit an 18-month low, but
rebounded after the plunge, unable to sustain the tremendous selling pressure of
the past five days that have taken the contracts down more than one cent. Sugar
fought back to scratch out a gain of .06 to 6.84.