Friday, 3 December 2010
Slew of Red
Woah. What a mess of red showing up this week on my latest signals table! Although I'm quite long in my discretionary trades based on the sweet price action lately, the Commitments of Traders data just hates this market. I've just updated my table based on this afternoon's data from the CFTC. Some highlights:
- U.S. financials: My trading setup for the BKX U.S. Bank Index has gone bearish after 11 weeks in cash. This is due to huge declines in the total open interest of the large speculators and small traders in the three-month Eurodollar contract, plus declining net positioning of the large specs. The bearish signal takes effect on Monday's open of trading.
- Nikkei: My Nikkei setup also goes bearish on Monday's open.
- S&P 500: My S&P 500 setup has been bearish since Oct. 4, and the data remains steadfastly negatory despite the recent market action.
- Natural gas: Even natural gas is jumping into the bearish camp. This, even after its collapse over the last few eons. The signal takes effect with a week's trade delay - i.e. on Monday, Dec. 13.
Hope you had a good week and that you have an even better weekend. Tune back in early next week for a portfolio update.