My biggest reason for preparing for a very solid move up is how big money is posturing in the Disaggregated COT report. Producers have been adding to net shorts for a time now at -96,090 contracts, as Managed Money has been adding to net longs now at 30,379 contacts. Our friends the Swap Dealers are net long 52,416 contracts. The last time Producers had such a large net short position was back in August 2011 when cotton started the ride up to over 220.
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...