Record Speculative Long Position in Silver Futures

There’s a thing about records. They continue until, they don’t. A string of record weather continues until it changes. Similarly, markets can be continually propelled until they aren’t. Such is the case with the current silver market. Speculators in the silver futures market have set net long and total position records in each of the … Continue reading Record Speculative Long Position in Silver Futures

Commitment of Traders Report Shows New Speculator Record Position in Gold

It’s one thing to hypothesize that a market is in a speculative bubble; it’s another to let the data write the story. According to the current Commitment of Traders report, large speculators just set e new net long record of 301,920 contracts. This eclipses their previous record of approximately 266,000 contracts set just this past … Continue reading Commitment of Traders Report Shows New Speculator Record Position in Gold

Commercial Support in the Canadian Dollar

The Commodity Futures Trading Commission releases its Commitment of Traders data weekly. This data tracks the amount of buying or selling in the commodity markets by the markets’ primary trader categories. I review this data every Sunday night when I begin compiling my trading plan for the coming week. The Canadian Dollar has hit my radar for each of the last
three weeks as the commercial traders’ position has grown faster than at any time in the past and their total position has only been exceeded once in …

10yr Treasury Notes Calling Fed’s Bluff

The interaction among the 10-Year Treasury Note’s market participants provides a great example of how the commercial traders’ actions, as categorized in the weekly Commitments of Traders report, can be predictive of future market movement. More importantly, this information can provide keen insight ahead of major market news events like the September FOMC meeting.

Gold and the US Dollar via the Commitments of Traders Report

This week, we’ll revisit the macro relationship between the gold and the U.S. Dollar Index. Then, we’ll examine the divergent trading behavior in the gold market between the large speculators who’ve recently set a new record position, and the commercial gold hedgers who are clearly happy to sell all of the forward production they can … Continue reading Gold and the US Dollar via the Commitments of Traders Report

Commitments of Traders Data Suggests Wheat Bottom not yet Formed

As many of you know, our our primary focus is the analysis of the Commodity Futures Trading Commission’s (CFTC) weekly Commitments of Traders (COT) report. More specifically, our analysis lies in finding and quantifying unsustainable position imbalances among the trader groups. In the past, we’ve measured this against both historical levels and recent changes in … Continue reading Commitments of Traders Data Suggests Wheat Bottom not yet Formed

Record Forward Selling to Reverse Recent Sugar Rally

Sugar has rallied more than 50% since the February lows, primarily based on supply concerns. There are current weather issues in South America and Southeast Asia as well as structural issues that will see the sugar market shift from surplus to deficit this calendar year. The common news reports regarding global El Nino issues combined … Continue reading Record Forward Selling to Reverse Recent Sugar Rally

Gold Reversal Could Trigger Speculative Washout

Our trading is focused on the thesis; “No one knows the value of his markets like those who pull it from the ground.” While individual companies or operations may be prone to mismanagement or other bad decisions, the collective actions of the companies within a given sector are rarely wrong. The tug of war between … Continue reading Gold Reversal Could Trigger Speculative Washout

Triple Witching Plus FOMC Equals Wild Week Ahead

The S&P 500 is making all-time highs ahead of the triple witching expiration of the underlying futures, futures options and cash options next Friday, June 17th. While this combination can be precarious in its own right, the fact that it comes two days after one of the most highly anticipated Federal Open Market Committee (FOMC) … Continue reading Triple Witching Plus FOMC Equals Wild Week Ahead