Sunday, October 3, 2010

Run with the Squid, COT

This report from ZH/Libanman Futures is pretty compelling.   It says long the USD, short every other currency, short equities, short bonds.  However, please also check the screen caps at the bottom for some other COT summaries.   You can page through all of them through the link on the lower left which has been there forever.  

I can't at this time explain the difference in the data presented.   The COT report seems to show mixed bets by the "commercials" on the S&P 500, pretty short the AUD.   Take a look yourself.

Well, per this report that is the way the "sell side" the primary dealers are positioned.   And the leveraged money guys/small speculators are positioned the opposite way.    Seems like although the trend is your friend, that is only until it ends.   I would rather run with the squid.

A big drop would encourage QE2 in earnest.

Here is a chart I noticed before the COT report. 

And this other COT report on commodities shows that open interest is at very high levels, lots of people are placing lots of bets. Very interesting.

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