Monday, July 11, 2005

US Dollar COT Report

The commerical category in the COT (Commitment of Traders) report now has the largest net short position in the US dollar since the gold bull market began. The speculator category now has the largest net long position for the same period of time. These positions were built up in just about 2 1/2 months.

This is very bearish for the US dollar and very bullish for gold and silver. It should be something to watch these positions unwind.

In the last few weeks, some US dollar technical indicators have been turning down or started moving sideways as the dollar continued on up. This divergence is bearish for the US dollar.

1 comment:

Anonymous said...

How about just a hint of WHY you draw the conclusion you do from the COT report.