DXY going up. COT data favors strong DXY.

The COT data is very important for traders to understand. Go to barchartdotcom. In the upper left, click on futures . On the left, click on commitment of traders. In the center left, click on DXY. The middle graph shows the positions of the Commercials (banks, etc), the Large Speculators, and the Small Speculators. The lower graph shows Dealer Intermediaries, Asset Managers, Leveraged Funds, and others. When you slide the mouse over the futures curve, a popup shows the COT data for that week. The Commercials (and Large Speculators by some) are called the smart money. Try to side with the Commercials for long-term trend changes changes. The last time the Commercial shorts were this low was June, 2014.

There are data for the major currencies and commodities. Look at AUDUSD for example. The Commercial shorts are near all time highs.

I am less enthusiastic about going long gold or silver right now. The COT helped me a lot with my prior gold and silver trades.

A strong DXY has widespread effects on currencies and commodities.

Kommentera:

Kommentera:

My prior post on gold COT data predicting a reversal up is shown that is old. Does not apply yo gold now