Sasafuturestrading writes: The COT report is issued on Thursday evenings by the Commodity Futures Trading Commission. What it does is break down the amount of buying and selling done by three groups: Commercials, Large Traders, and Small Traders.

The largest powers in the marketplace are the Commercials. These are the large users and producers of the commodity. They do not use the commodity markets to speculate or directly make money in the markets. They are producers and users of the commodity, so they sell forward or hedge their production/demand. They use the markets for selling and delivery, not speculating.

In this next chart we’re looking at the percent of Commercials Long Position in S&P500. Please look at the white vertical line in the chart, when the percent of Commercial Long Position are close at 53% it means the Commercials have been doing a relative large amount of selling.

Since 2009 a minimum level of the indicator was followed by a market crash 2 out of 3 times.

Now the indicator is at a minimum level…

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The P.A.S. system is based on the following indicators:

Fundamental
Cyclical
Technicians

The P.A.S. system find a market set up and only then establish a position once there has been a change in trend. Sasafuturestrading opinions are his own, and are not a recommendation or an offer to buy or sell securities. No responsibility can be accepted for losses that may result as a consequence of trading on the basis of this analysis.

Sasafuturestrading receives no compensation of any kind from any groups, individuals or corporations mentioned in his reports. As trading and investing in any financial markets may involve serious risk of loss.

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Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

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