Thread: COT Reports
View Single Post
Old 11-04-2004, 02:38   #12 (permalink)
novice
Super Moderator
 
novice's Avatar
 
Join Date: Oct 2003
Posts: 1,222
Rep Power: 0
novice is an unknown quantity at this point
Don't know about the CHF/USD

Why hedgers would be net very long.

If I had to guess I would say that the CHF/USD is a much smaller currency pairs in terms of volume and as such the signals that it gives are going to be more erratic.

In september 2003 the hedgers where net long CHF/USD and yet the CHF/USD rallied strongly.

About the inverse relationship:

In forex EUR/USD and USD/CHF

In COT EUR/USD and CHF/USD

Thus in forex there is going to be an inverse relationship in COT there is going to be a direct relationship. Just depends on how the cross is quoted (i.e. which is the base currency and which is the selltement currency).

I guess if hedgers are net long while the trend is up it is even more bullish than is hedgers where only somewhat short while the trend is up.
Attached Thumbnails
cot-reports-cot4.jpg  
novice is offline   Reply With Quote