Commitment of Traders: Professionals -6.3% (short)
Professionals reduced their Short positions this week, but not by much. The Commitment of Traders reading is -6.3% of total open interest, down from -7.2%.
The Large contract (e.g. SP) professionals are still more bearish that the Mini (e.g. ES) contract Professionals with the difference standing at -4.6% (red line above).
I’m waiting for a few weeks in a row with large increases in short positions before being convinced that this market is going to turn. Looks like dips will continue to be bought.
Commitment of Traders: Oscillator +77
The Commitment of Traders Oscillator kicked back up again this week from +68 to +77. Overbought but not turned yet.
US Dollar Index: Commitment of Traders
US Dollar Index: Professionals +40.1% (long) and Oscillator -42
Professionals continued to increase their Long positions on the US Dollar this week. The net Long position reading stands at +40.1%, up from +32.9% last week.
The Commitment of Traders Oscillator has crossed the zero line and now reads -42. We’re in the buy zone now but not over-sold yet. So much bearishness about, I think money managers are going to be surprised when the US Dollar strengthens.
Arrived in France
Home in France for next 3 months
On a personal note, the working holiday that my wife and I have been planning for the last few months is now underway. First stop is Biarritz in France for 3 months. We’ve got a charming apartment in the historic Helianthe building. Coming from Australia where everything is so "new" we get a real kick out of staying somewhere that was built in 1884. Surf promised for mid-week – we’ll see.
Remember, the Commitment of Traders data is collected weekly after the close on Tuesday and the Commitment of Traders Report is published after the close on Friday.