Saturday 20 January 2007

Commitment of Traders

Here are the latest Commitment of Traders charts for Emini traders:

Emini Commitment of Traders Image

This week's Commitment of Traders reading is -10.8%

Professional net short positions now make up 10.8% of total open interest in all stock index futures. This is an increase in short positions of 1.6% from last week. The professionals have not held this large a short position since January 2005.

Emini Commitment of Traders Oscillator Image Cyan (light blue) dot = Low turning point; Red dot = High turning point

This week's Commitment of Traders Oscillator reading is +20

The oscillator has now turned up this week, having spent only one week below zero and in the "buy zone". This rise above the zero line confirms a short term low in the market during the week before last (cyan/light blue dot). We have now re-entered the "look for short trades" zone. Given the large net short position held by professionals, a more substantial break to the down side looks ever more likely.

Click here for a full explanation of this Commitment of Traders analysis.