Monday, September 26, 2011
Banks Go to Cash, Gas Still Bearish
Only one new signal for execution on next week's open. My setup for the benchmark BKX U.S. Bank Index, which was bearish last week, goes to cash on Monday. My other bearish signal - for natural gas - stays bearish this coming week. Everything else is in cash this week.
My newly updated signals table based on the Commitments of Traders data also includes two bearish signals coming down the pipeline for mid-October. My setup for crude oil goes from cash to bearish on the open of Oct. 10 based on bearish positioning by the commercial hedgers and small traders (both of which are the "smart money" in this market). Also, I've finally included more details about my new setup for copper on that table. That setup goes bearish on Oct. 17 because of bearish positioning by the large speculators and small traders.
Reader feedback time: I'm curious how you use the COT data in your trading. Also, what are you doing that's working - and that isn't working - these days?
Good luck this week!