Gold, COT Style 02/20/2010

February 20, 2010, Posted by ttbm at 5:09 pm

See what we think about Gold.

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Currently have 2 Comments

  1. Michael Gerardy says:
    February 22, 2010 at 12:25 am

    I am new to this site so forgive my naivety, but isn’t it generally considered commercial buying a bull indication and large spec buying a bearish indication? Commercial shorts usually win over large spec longs historically. Am I missing something here?

  2. ttbm says:
    February 22, 2010 at 1:47 am

    If you watch Commercials during rallies, you will see it’s their selling that rises and their buying that declines. Commercials tend to buy or cover on the way down and sell or short on the way up. Large Spec buying usually follows Commercial selling up during rallies (guess who is buying what Commercials are selling) and is inverse to Commercial buying. Commercials are “Trend Enders” and by that we mean, when you see Commercial selling at high levels, you know it’s a signal of an impending top and vise versa. When Commercial buying is high, that’s a signal that a bottom is not far off. Take a look at our various COT posts and you’ll get the hang of how we use the COT data. For us, COT analysis makes a big difference in determining what’s a high probability trade and what’s not. Thanks for your input.

    Alex

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