The Quick Takes Pro blog by Michael Kahn, CMT about anything that might affect your portfolio.
Friday, September 3, 2010
Funny how Spoos rallied before the news
Either data services are FUBAR in terms of how they report data and time or a lot of people knew what the jobs report would say just before it came out. You make the call.
Hi Michael, Many years ago I met Larry Williams in Sydney at a seminar & he spoke a lot about how good the COT report is at telling you what the large spec's are doing. I did some back testing recently as John Person's also raised this same point & its incredible to say the least how good the large spec's are at positioning when we come close to major turns.
If you look at the last 2 COT reports (I look at the CME emini ES contracts) when the S&P500 was close to major support the Large spec's were increasing there Net Long position while retail were increasing there Net short position. Until we see a change in the large spec's the market is going to melt up. Cheers
Hi Michael,
ReplyDeleteMany years ago I met Larry Williams in Sydney at a seminar & he spoke a lot about how good the COT report is at telling you what the large spec's are doing.
I did some back testing recently as John Person's also raised this same point & its incredible to say the least how good the large spec's are at positioning when we come close to major turns.
If you look at the last 2 COT reports (I look at the CME emini ES contracts) when the S&P500 was close to major support the Large spec's were increasing there Net Long position while retail were increasing there Net short position.
Until we see a change in the large spec's the market is going to melt up.
Cheers