Weekly Market Outlook: Commitment of Traders Cot Heatmap - 29 Nov 2011

 

As shown in the commitment of traders cot report, Gold futures are getting lots of long positions again. Currently in an overbought position. This is not really surprising. The "flight-to-safety" precious metal is much sought after in this economic turbulent times. With the Euro situation unclear and the end-of-the-year approaching, many fund managers who have not hit their target, are placing their safest bet in the speculative metal. Even AUD/USD has a similar bullish movement.

Weekly Market Outlook: Commitment of Traders Cot Heatmap - 22 Nov 2011

Commitment Of Traders COT 

The Commitment of Traders COT Report for last week was published on Monday instead, due to the Thanksgiving last Friday.

Gold is in the RED zone again, displaying the 'flight-to-safety' behavior. The best performing metal of this year, Palladium, is comfortably in the GREEN zone. Time to study its price charts.

ECB will lend money to the IMF to purchase Euro-bonds

Interesting stuff that I found on YouTube yesterday. 

It says that the European Central Bank ECB) will lend money 

to the International Monetary Fund 

so that they can purchase sovereign debt and buy Euro-bonds.

It is sort of like I am lending money to you, so that I can borrow money from you.

The trick is I am lending to you at say 0.5% while borrowing from you at 1%, so effectively only paying you 0.5% of the borrowed amount for the effort,
while showing everyone that the Euro-bonds are all sold out.

Another real life game theory application - who are the real winners?

Weekly Market Outlook: Commitment of Futures Traders Heatmap - 15 Nov 2011

 

This week, we have seen the NASDAQ moved from the dangerous RED zone 

to the moderate YELLOW zone. 

Technology stocks such as APPL have also declined as forecasted.

I sort of taken an interest in U.S. Dollar Index, with lots of currencies weakening against the greenback this week. If this keeps going up, it actually tells us that money is escaping the US stocks markets.

As the winter months are approaching, 

we are also seeing more long positions being taken up in No.2 Heating Oil and Crude Oil Light Sweet.

Weekly Market Outlook: Commitment of Futures Traders Heatmap - 08 Nov 2011

 

Last week's COT report only came out on Monday as last Friday is an US holiday.

The NASDAQ still looks pretty overbought. Monitor your positions if you have US technology stocks.

Commodity Trading for Dummies

Weekly Market Outlook: Commitment of Futures Traders Heatmap - 01 Nov 2011

 

Looks like NASDAQ are heavily loaded with longs. If you study the price chart for this year, it has been largely sideways. Let's watch and see if there would be a major sell-off in the stock markets soon, especially in the technology stocks.

Last Monday, there is a great surprise for the Yen speculators.