Goldtent TA Paradise

COT Charts

1. Fullgoldcrown says:

   December 19, 2015 - 8:18 pm at 8:18 pm

   Mark : I am nor COT expert but …lets talk about this

   I see where the COTs as analysed from the simplefact that the Commercials are not very short if al all and since the commercials aways win this must be bullish !

   Is this really correct ?

   Do the Commercials low shorts always signal a Bullish reversal?

   Look at it from an open interest point of view

   Wen the Commercials are not massively net short…it usually means the Specs have closed their longs too

   Commercials are the Market makers….they sell to the Specs when open interest is rising and buy back from them when they are selling .open interest contracts…like now)

   A low open interest…like the solid line in the chart is showing….that’s bullish ?

   From a sentiment aspect it shows lack of interest .

   I don’t think so…there is much more to the COTs

   Trader Dan follows the COTs from a different angle….He notes that all told….all 3 Spec Categories total are still net Long .

   Anyhow ….if it were as simple as we all think in interpreting the COTs…we would all be having an awesome time…at the Spec’s expense