Friday, 21 June 2013

Big Bearish Move in Nikkei Ends Six-Month Signal

Big news for Japan's Nikkei Stock Average in this afternoon's Commitments of Traders report.

Commercial hedgers and small traders in Nikkei futures and options have dramatically reversed their long-time bullish open interest.

Their move suddenly ends my six-month bullish signal for the Nikkei, which has done very well. The signal goes to cash as of next week's open of trading.

See my latest signals table for more details on how trader positioning is shaking out in the Nikkei and other markets I trade using the free weekly COT reports from the U.S. Commodity Futures Trading Commission.

The commercial hedgers made an especially big move, with their Nikkei positioning plummeting from an extraordinary 3.1 standard deviations above average last week to 0.1 standard deviations above.

In other news, my bearish signal for the BKX U.S. Bank Index also ends next week, moving to cash.

Good luck next week, and Joyeuse St-Jean to Quebec readers!

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