Commitment of Traders (COT) Reports - 03/02/2010

New Commitment of Traders (COT) graphs. This is the March 5th report (data as of Tuesday, March 2nd). Graphs display net positions for Commercials, non-Commercials, and non-Reportable traders.


CLICK ON THE GRAPHS TO ENLARGE

S&P 500 (e-mini) COT Report
Not surprisingly (considering a six-day winning streak for stocks), the e-mini's net positions graph still looks bullish. The levels of Commercial net long positions have not been seen since March of 09. The elevated levels of net long positions have been sustained now for four weeks straight. A retest of 1150 on the S&P seems almost inevitable at this point.

US Dollar Index (DXY) COT Report 
Commercials' net long positions are still in extreme positive territory.  It's very interesting to note a positive correlation between the dollar and the S&P continues to develop. When you think about it, it makes sense: the Fed seems much closer to invoking its exit strategy sequence than either the ECB or the BOE. And while US recovery is still spotty at best, the EU and the UK are plagued with political and financial problems that put both in a disadvantageous position relative to the US.

Euro COT Report
Net short levels for the single currency are still at extreme levels, though slightly less so this week. Remember, by Monday, this information will already be week old - any positive news coming out of the EU will produce a nice short squeeze for the euro.

British Pound (GBP) COT Report
No other way to put - the pound is getting pounded. It even performed worse than the euro. how about that?
no wonder then, to see a record net short positions against the GBP. 

Australian Dollar (AUD) COT Report
RBA raised rates earlier this week. The move was largely anticipated and the Aussie showed little to no gains immediately following the RBA's announcement. However, the interest rate differential has increased which should get some would be carry traders drooling. It is highly likely that the slightest easing of sovereign debt concerns will send the Aussie higher, especially against the non yielding yen.

Canadian Dollar (CAD) COT Report
Without a doubt, the loonie has been one of the best performing currencies against the strong US dollar and Japanese yen.

Japanese Yen (JPY) COT Report    
Surprising spike in net long for commercials. Again, we have to take into account that this report reflects positions as of last Tuesday, i.e. before the successful Greek bond offering and better than expected US NFP report.