Follow the Yellow Brick Road

Can we Follow where the Big Big Big Boyz are putting there money. Click on the Archive to get A C.O.T explanation Quick explanation 1.Comment of Traders is a report that allow us to see where traders have placed there orders The is broken into 3 section Commercials: who are the producers of your goods. the food you eat ,l pigs cows Wheat, corn,gold etc Non-commercial : who are the hedge fund banks and institution .i.e Tesco where you pick up you grocery's Non- re-portable: Under-cleared Now the Commercial obviously are the first 1st to know because they are the farmers and handle the physical product and know the future out come of there crops. Now they sell to the non-commercials who to bring the goods to the market and sell it to the retailers So these two power houses buy and sell from each other. What i'm trying to do is decipher when this transaction changes hands To read more http://www.investopedia.com/articles/forex/05/COTreport.asp#axzz1gmr7RpQz Extreme Positioning Extreme positioning in the currency futures market has historically also been accurate in identifying important market reversals. As indicated in Figure 3 below, abnormally large positions in futures for GBP/USD by noncommercial traders has coincided with tops in price action. (In this example, the left axis of the chart is reversed compared to Figure 2 because the GBP is the base currency.) The reason why these extreme positions are applicable is that they are points at which there are so many speculators weighted in one direction that there is no one left to buy or sell. In the cases of extreme positions illustrated by Figure 3, every one who wants to be long is already long. As a result, exhaustion ensues and prices begin reversing. Figure 3: Net noncommercial positions in GBP futures on IMM (corresponding axis is on the left-hand side) and price action of GBP/USD (corresponding axis is on the right-hand side) from May 2004 to April 2005. Each bar represents one week. Source: Daily FX. Read more: http://www.investopedia.com/articles/forex/05/COTreport.asp#ixzz1gmz6MDoy http://www.investopedia.com/articles/forex/05/COTreport.asp#axzz1gmr7RpQz