Sunday 10 June 2012

Banks Going Bullish, Equities Turn Corner?

Only one signal takes effect on this coming week's open of trading in my COTs Timer trading strategy based on the weekly Commitments of Traders reports: bullish for my trading setup for the benchmark BKX U.S Bank Index.

The signal comes as a result of a decline in bearish derivatives positioning by the large speculators in the three-month Eurodollar contract (an important measure of liquidity).

All my other equity signals have been bullish for at least several weeks, so this might mean the corner has been turned on the recent market selloff. But who rightly knows! My signals based on the free COT report data are certainly known to be wrong at times.

See my newly updated latest signals table for more details on positioning in the Eurodollars and other markets I'm following with my strategy. Good luck this coming week.

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