Saturday 26 May 2007

Emini Weekly Update: 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 +3.0%

Professionals are net long and their net long positions make up 3.0% of total open interest in all stock index futures. This is an increase of 1.2% from last week. The Commitment of Traders data has been shown to be extremely accurate in judging the strength of this last rally with the reading turning positive 11 weeks ago.

Note: Commitment of Traders data is collected after the close on Tuesday each week and then published after the close on Friday.

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 +37

The oscillator declined this week from +62 to +37. We got a solid down day on Thursday this week but no follow-through and no break of the previous week's low. Short term we're close to a cyclical low turning point and professionals have been adding to long positions (+3.0% reading). We'll have to see how this week turns out but the uptrend appears to still be intact despite the oscillator pointing down.

Remember, this is a longer term Emini indicator and designed to highlight broad trends. Click here for a full explanation of this Commitment of Traders analysis.