Banking on Banks

My signal for the BKX U.S. Bank Index, a benchmark for U.S. financials, goes bullish on next week's open of trading.

That's thanks in part to large speculators improving their futures and options positioning in the three-month Eurodollar contract, a closely watched indicator of liquidity in the financial system.

See my latest signals table for more details on the latest trader positioning as reported in the weekly Commitments of Traders reports from the U.S. Commodity Futures Trading Commission.

All my other signals based on this data remain the same. That includes my bearish signal for natural gas, which has been doing nicely again. (Knock on wood!)

But if you're thinking of jumping in on that one now, keep in mind that my signals are backtested to have a certain probability of making money from open to close of the trade. Getting in part way through a signal isn't part of the backtesting.

Have a good weekend, and Happy Canada Day to Canadian readers, eh!