COT Reports

[novice]

Say for EUR/USD:

If hedgers became net long and speculators became net short would this signal that the long term trend has reversed?

[Iris]

Novice..............

USDX.....

Large Specs......74% Short.
Commercials 67% Long.

Euro.....

Large Specs 60% Long....
Commercials 56% Short.

Remember the Commercials Accumulate/Distribute Positions over Time to the Large/Small Specs.

Commercials are the Smart Money...and their positioning has to be balanced against their next sizable trading class...Large Specs....between these two is the balance of Power established on future Time/Price....the commercials move the Market.

Iris

[bearprofits]

Iris & Novice,

WOW! Thank you both for the info. Alot to study. Are there any other books or websights that provide indepth study into these areas?

Any other information you think we need to know please post!

Again thanks!

[novice]

Gold speculators were very long when price peaked at about 430 USD.

Hedgers were very short.

Gold has since fallen 30+ USD.

[bearprofits]

Making sure I reading this right?

Euro Commercials have increased their shorts? Net increase longs +3401 net increase short +4907 net over all short +1506
Open intrest climbing.......Looks like Euro still droping?

[bearprofits]

Someone please explain to a poor bear, whats the difference between Euro Fx and Eurodollar

[novice]

I have asked the exact same question.

Euro fx is the EUR/USD exchange rate

Eurodollar is a US interest rate index. Eurodollar=100-US interest rate (where the US interest rate is the interest rate the European banks charge each other).

The Euro fx is a foreign exchange market. The Eurodollar is a interest rate market.

[novice]

Speculators were very long in the EUR/USD at 1.3000 while hedgers were very short.

Speculators were very long in the XAU/USD at 430 while hedgers were very short.

Both markets have fallen heavily. In both markets speculators have reduced their long positions while hedgers have reduced their short positions.

How do you see the market now?