Commitment of Traders Charts – Sunday 15 July 2012 (16:24)
Rolled through the latest Commitment of Traders charts in this weekend’s video. All the risk on charts are still showing Bearish divergence signals and the risk off charts are still showing Bullish divergence signals. So for me the activity we’ve seen since the Low on 5 June is just a complex correction up.
The activity after Ben Bernanke’s testimony on Tuesday will be key. Remember, previous announcements of QE have all come after significant sell-offs in the market – which we’ve not seen yet. So I’d be surprised if the Fed announce/hint at QE now. And that could disappoint. We’ll see.
Head down this week and take what the market gives. Good luck with your Emini trading.