Monday, 10 January 2011

Data Bullish for Bullion, Banks

I updated my latest signals table based on Friday's Commitments of Traders data just before the open of trading this morning. Sorry about the delay! I was away from my office last week and over the weekend. Some interesting new developments you'll see on that table:
- S&P 500: The "smart money" commercial hedgers have finally gotten on board with the rally. They've reversed course and gotten somewhat more bullish in their positioning. My trading setup for the S&P 500 was already in cash after being stopped out in early December from its short position. But now the setup will officially go to cash on the open of trading on Jan. 31.

- BKX U.S. Bank Index: This setup was bearish last week and went to cash this week. But all three component signals have suddenly gotten bullish with the latest COT data. Because of the varying trade delays in that setup, the overall signal remains in cash. But I'll be watching closely for a possible discretionary trade in financials.

- Gold: My setup goes from cash to bullish as of today's open of trading.

- Nikkei: This signal goes from bearish to cash today.

- Crude oil: This signal goes from short to cash on next week's open of trading, on Jan. 17.

Good luck this week, and be sure to check my portfolio page, which I've also just updated.

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