Key Reversal Triggers Dow Sell Signal

Commitment of Traders sell signal triggered by key reversal bar.

August 22, 2012

This trade setup is merely a random sample of the day’s trades generated by COT Signals. To track our work their and receive all of our nightly trading recommendations, click here.

 

The Dow made a new four month high at 13308 yesterday. The new high was masde on declining volume and open interest and the market was unable to hold the new level leading to a key reversal bar.

This is a classic example combination of technical and fundamental factors coming together to create a solid trade setup. The Commitment of Traders commercial traders have been selling the Dow for the entire rally, paring more than 50% of the long position they accumulated at the June lows. Fundamentally, we discussed the overvalued nature of the equity markets in last week’s blog. Finally, the key reversal bar at 90 day highs is technical analysis 101. We have sold the Dow futures and placed our protective stops at yesterday’s swing high of 13308. 

Key Reversal Triggers Dow Jones Sell Signal

 Try COT Signals!

ANDREW WALDOCK

866-990-0777

This information is not to be construed as an offer to sell or a solicitation or an offer to buy the commodities herein named. The factual information of this report has been obtained from sources believed to be reliable, but is not necessarily all-inclusive and is not guaranteed as to the accuracy, and is not to be construed as representation by Commodity & Derivative Adv. The risk of trading futures and options can be substantial. Each investor must consider whether this is a suitable investment. Past performance is not indicative of future results.

Commitment of Traders Report to Cap Coffee's Rally

Commercial Traders Nail 20% Rally. Anxious to Take Profits.

Classic Commercial trading pattern mimics the rise and fall normal market behavior.

 

July 23, 2012

This trade setup is merely a random sample of the day’s trades generated by COT Signals. To track our work their and receive all of our nightly trading recommendations, click here.

We published a buy recommendation in the coffee futures market on June 22. We suggested that based on the movement we saw in the Commitment of Traders Report as well as the discrepancy between JO, a coffee ETF versus the coffee futures, that the coffee futures market had become oversold and commercial traders were building a base to force short covering in the futures market.
The coffee futures market has rallied 20% since then and commercial buyers from one month ago have turned sellers. Commercial sellers have pared their position by 23% in the last three weeks. The heavy selling has turned momentum negative while Thursday and Friday’s action created a reversal and sell signal from overbought levels. We will be selling September coffee futures and placing a protective stop above Friday’s high of  190.85.

Commitment of Traders shows reversal in Commercial positions.

Sign Up For
COT Signals!

ANDREW WALDOCK
866-990-0777
This information is not to be construed as an offer to sell or a solicitation or an offer to buy the commodities herein named. The factual information of this report has been obtained from sources believed to be reliable, but is not necessarily all-inclusive and is not guaranteed as to the accuracy, and is not to be construed as representation by Commodity & Derivative Adv. The risk of trading futures and options can be substantial. Each investor must consider whether this is a suitable investment. Past performance is not indicative of future results.