Commitment of Traders reading remains at +7.6%
The Professionals are net long and their net long positions make up 7.6% of total open interest in all stock index futures. This is unchanged from last week.
There's a lot of uncertainty and negative talk around the markets this week. We have some earnings jitters and evidence that the Fed is not altogether unified in their outlook for the economy. Volatility has increased and day traders are having fun with the large intra-day swings. Two market indicators stand out for me. The first is the consistently bullish COT numbers. The second is the lack of a bearish signal on the ISEE (put/call ratio).
On the chart below: Light blue dot = Low turning point; Red dot = High turning point.
This week's Commitment of Traders Oscillator reading is +7
The COT Oscillator rose this week from 0 to +7. Officially we have now entered the sell zone but it may be too early to start looking for short trades. My best guess is that the Emini will make a bottom during the first couple of days of this week and then continue up.
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.