Friday, 30 May 2008

NASDAQ 100 to Cash, Going Long Gold Monday

Quiet week this time around from the Commitments of Traders data. That's the nifty weekly info on trader positioning in all the major markets released by the kind folks at the U.S. Commodity Futures Trading Commission. Here's what they told us this week:

- Commercial traders in NASDAQ 100 futures and options have been dumping their net long positions steadily for six weeks. The "smart money" folks have just hit a bearish extreme low in that positioning that has given me a sell signal in my setup for these traders. My overall NASDAQ 100 setup, however, relies on acting only when my commercial and large speculators setups both agree in their signal. The large specs happen to still be on a long signal, so that means I'm going to cash in this market on Monday's open of trading, June 2.

- My gold trading setup flipped to bullish with the May 13 COTs report, so with that setup's two-week trade delay, execution is for Monday, June 2. A quick check of the other markets that are highly correlated to gold (that would be silver, platinum, copper, heating oil and crude) shows that two are presently bearish (silver and copper) while the remaining three are bullish. That means I can take this gold signal on Monday as a majority of the highly correlated markets will be in the bullish column on that day.

You can see the rest of the updated signals from my setups based on this interesting government data at my Latest Signals page (click the first table link). Have a great weekend and good luck next week!

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