Record Nikkei Position: Mega-Bullish

Some dramatic moves in the last Commitments of Traders report. Here are some highlights:

- The "dumb money" large speculators in Nikkei futures and options have dramatically increased their net short position, giving me a second straight bullish signal. In fact, they've never held such a large net short position as a percentage of the total interest since the data began in 1995. The extreme positioning coincides with my new bullish signal from the Aug. 28 COTs report. My Nikkei trading setup based on the COTs data has a five-week trade delay, and I will execute it for the open of trading next week. (Click "How It Works" and "Latest Signals" in the Navigation bar for more info.)

- S&P 500 small traders suddenly reversed course from a fairly bullish net long position to a near-record of bearishness - 3.24 standard deviations below the 17-week moving average. This flipped my signal for this setup from bearish to bullish. That's based on fading the small traders when they hit extremes in their net positioning.

- My setup for the 13-week T-Bill gave its 10th consecutive bullish signal. That's based on trading on the same side as the small traders in 3-Month Eurodollars. The run started with the July 24 COTs report, at the beginning of the Credit Crunch of 2007.