Wednesday, May 28, 2008

Market COT & Margin




COT shows traders risk adverse which is confirmed by margin account activities.
Margin account activities also show traders risk adverse positions as cash level is higher than margin level which is the first time since Oct 2002 low. Conversely, markets are hyping by supporting at critical supports such as we have see on 5/23/2008 LOD to lure in the cash positions; however, COT low commitment is on going for several weeks as we can see on COT that large speculators are on short-side except DOW.

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