Commitment of Traders (COT) Reports - 02/23/10

I decided it would be beneficial to follow a few other COT reports in addition to the S&P e-minis and the Dollar Index reports. So as of this week, I will post the COT reports in a dedicated segment and include the following reports:  S&P 500 (e-minis) , Dollar index (DXY), Euro, GBP, Australian Dollar, Canadian Dollar, and Japanese Yen COT.


I believe the additional reports will help us form a more complete assessment of market sentiment. So, without further ado....

CLICK ON THE GRAPHS TO ENLARGE

S&P 500 (e-mini) COT Report
This week's COT report continue to show a growing divergence between retail investors (non-reportable) and big market speculators (non-commercials). Generally speaking, this is a bullish signal. The non-commercial net-long positions are at levels not seen since March 2009.

Dollar Index (DXY) COT Report
The Dollar index COT report reveal a continued bullish stance with respect to the US dollar. Both non-commercials and non-reportables are net long on the dollar. Not all that surprising considering the state of the Euro and British pound.

 








Euro COT Report
Euro COT report is revealing - new record bets against the single currency have been recorded in this week's report.

British Pound (GBP) COT Report
The best (or worst) untold story over the last couple of weeks has been, without a doubt, the British pound. The GBP has been the worst performing currency among the majors - losing ground even to the battered euro. We should not be surprised then to see this massive net-short position against the pound:

Australian Dollar (AUD) COT Report
perhaps the only major currency that can actually claim the title "higher yielding", the AUD came under some pressure as a result of monetary tightening in China. However, market participants are still averse to short the Aussie. The COT report shows net-long positions held by both non-commercials and the non-reportables have increased over since the last COT report:

Canadian Dollar (CAD) COT Report
Much like the Aussie dollar, the loonie has held up well against the strong US dollar. Again - no big surprise when we take into account the S&P's COT report.

Japanese Yen (JPY) COT Report
Movement in Yen and changes in the JPY's COT reports do not have a high degree of correlation. However, this is still an important report. Yen is still considered the safe have currency of choice. As such, we should expect to see Yen eases if and when risk trade is back in vogue. The yen COT report is suggesting exactly that: a weakening yen: