Ever wonder what the smart money is doing in the markets? You don’t need to pay big bucks to find out. Just read the Commodity Futures Trading Commission’s free weekly Commitments of Traders report. The CFTC’s COT data is a Holy Grail of market info, listing trillions of dollars in positions in 200+ markets – gold, crude oil, natural gas, silver, forex, equity indexes and lots more. My trading system, which I posted about here for seven years, gave weekly trading signals based on the COT data.
Monday, 8 December 2008
Long Dow Industrials
Just updated my portfolio page to reflect my current positions based on my COTs Timer strategy. I was long the Nikkei from a few weeks ago and just put on a long Dow Jones industrials position this morning shortly after the open. My stop is just below the highs of Dec. 3 and 4 at $29.49 for the DDM ProShares Dow ETF. I've made a couple of changes in how I'll report my positioning. I'll just be reporting the gain or less and dropping my position sizes. I don't think that's as meaningful now that I'm doing some discretionary trading on the side again. The position sizes also reflect technical considerations - i.e., where my stop is - rather than the maximum portfolio allocations for my system. I'll include trades on this page if I executed them any time during the week following a new signal. (To read more about why I'm temporarily changing the way I trade my system, see this post.) Good luck this week!
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