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Market Pulse: March 19

COT Data

If you are wondering when the trend started, look at the COT report. I am looking at the disaggregated report. You can see how currently Producers are continuing to liquidate net shorts now at -19,775 contracts. Managed Money are continuing to add to net shorts now at -8,962 contracts. Other Reportables are 7,831contracts, and our friends the Swap Dealers are net long 21,823 contracts. Here is a perfect example of rising open interest not predicting higher prices. If you are using OI without the COT, you are staring at the sun without eye protection. Keep an eye on when Producers start adding to net shorts and Managed Money start adding net longs.

COT
 

If you need help understanding how to understand how to use the NEW COT report to your benefit get instant access to my new e-book "What Lies Beneath ALL Trends". It is filled with eye opening information.Commercial Net Tracker instructions: This form tracks the Commitment of Traders (COT) data for the commodity futures market. This form "looks" at the most recent five weeks of COT data and provides visual indications of the data. A) If the current value is at a 12-month low, the cell will display a red/burgundy background. B) If the current value is at a 12-month high, the cell will display a green background. C) If the current value went from net negative to net positive, the cell will display a blue background (indicating a bullish condition). D) If the current value is both a 12-month high and also went from a net negative to a net positive, the background will be green. You should view the data with green backgrounds to determine if they also went from net negative to net positive.

Proceed to Page 3 for this week's detailed fundementals...

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