27 March 2010

Commitment of Traders and Crash Warning Signal

Commitment of Traders numbers are out and the Professionals flipped to net Short by 1.3% of total open interest. This has triggered my Crash warning signal which needs:

  1. Market to make a new 52 week high, followed by
  2. Professionals flipping from Long to Short

Please don't get over-excited about this. Just wanted to share the analysis with you and the video has more detail on how successful this pattern has been historically.

If you're reading this article via email or RSS reader, then follow this link to view the Commitment of Traders video on the website.

HIGH DEF VIDEO – MAY TAKE 15 SECONDS TO LOAD

Commitment of Traders and Crash Warning Signal (6:44)

Good luck with your Emini trading next week.