COT: Fast Money Chases British Pound Rally

The COT report is published each Monday and includes observations on charts of markets that exhibit interesting ownership characteristics and/or changes in ownership characteristics.  This week’s report includes observations on the British Pound and 5 Year U.S. Treasury Notes.

Sign up HERE to receive free market updates.

If you want more insights, including analysis of intraday, daily, weekly and monthly charts, member only webinars, Twitter updates, and trade plans, then join the SB community (click here for more).

  • Extreme 52 week readings in GBP, CAD, AUD, the E-mini Dow, and heating oil
  • Extreme 4 week position changes in GBP and 5 year U.S. T-Notes
  • Most interesting is that speculators are the LEAST bullish on E-mini NASDAQ 100 since May 2016

52 Week Ownership Profile Extremes – British Pound, Canadian Dollar, Australian Dollar, E-mini Dow, E-mini NASDAQ, Heating Oil

13 Week Volume Highs – Euro, Japanese Yen, 30 Yr. U.S. Treasury Bonds, Soybean Oil

Currencies Indexes Interest Rates Metals 
US Dollar4S&P 5008630 Yr US Bond63Gold82
Euro96NASDAQ 100410 Year US Note53Silver29
British Pound98Dow885 Year US Note22Copper65
Swiss Franc67Nikkei18292 Year US Note6Platinum33
Japanese Yen8Eurodollar53
Canadian Dollar100
Australian Dollar94
New Zealand Dollar69
Mexican Peso71
Energies Agriculture Meats Softs 
Crude Oil49Wheat71Lean Hogs63Coffee10
Heating Oil94Hard Red Winter Wheat35Live Cattle67Cotton24
RBOB Gas77Corn12Feeder Cattle98Frozen OJ31
Natural Gas4Oats69Cocoa63
Soybean Oil39
Soybean Meal49
Rough Rice65

The COT Index is the difference between net speculative positioning and net commercial positioning measured over a 52 week percentile.  A blue colored bar indicates that the difference in positioning is the greatest it has been in 52 weeks (100 reading on the table) with speculators buying and commercials selling.  A red colored bar indicates that the difference in positioning is the greatest it has been in 52 weeks (0 reading on the table) with speculators selling and commercials buying.  Speculators tend to be on the wrong side at the turn and commercials the correct side.  Use of the index is covered closely in detail in my book.

Latest CFTC Release dated September 26th, 2017

Non Commercials (speculators) – Red

Commercials – Blue

Small Speculators – Black

COTDiff (COT Index) – Black

52 week Percentile (COT Diff) – Gray

British Pound CME Continuous Contract

The 4 week change in British Pound positions is extreme (speculators buying and commercials selling).  The extreme reading is consistent with at least a pause in price advance.

5 Year U.S. Treasury Notes CBOT Continuous Contract

The 4 week change in 5 Year U.S. Treasury Notes positions is extreme (speculators selling and commercials buying).  The extreme reading is consistent with conditions seen near a price low.