Sunday, 2 October 2011

Data Bullish for Bullion and Bond

A slew of new signals to report for tomorrow's open of trading and the coming weeks. See my newly updated latest signals table for all the details based on the latest weekly Commitments of Traders data on how the biggest market players are positioned in the markets. For newbies, my COTs Timer trading strategy gives signals in eight markets based on past patterns of COT trader derivatives positioning that reliably signaled moves in price action. Here are some highlights from the latest COT data:

- Gold: The huge sell-off in bullion has spooked lots of folks. Good time to buy? Or is that just "losers averaging losers," to paraphrase Paul Tudor Jones. (Smart guy!) In this case, the COT data suggests the wrong-way large speculator crowd is at extremes of bearishness in its futures and options positioning. As my table shows, the large spec net position is now down to 2.5 standard deviations below average as a percentage of the total open interest. That's historically tended to lead to upward price moves.

- 30-year Treasury bond: My setup for the bond also goes bullish on Monday's open of trading.

See my signals table for more upcoming signals. Good luck next week.

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