COT Money Flow 12/29/09

Take a look at the COT chart of the Dollar linked below. It is extremely overextended internally and if any technical support levels get violated on the downside, a significant amount of long liquidation is going to occur. We got just a taste of that in today’s session as the Dollar came under strong pressure with year-end positioning now completed and managed money taking positions across a variety of markets for 2010. - Dan Norcini

Dan,

Excellent observation. Commercial traders have been fading the rally and the strong dollar spin for weeks. A reversal in the money flows from short to long will create the another stochastic "hook" that will mark the beginning of another mark down phase.

Regards,

Eric

U.S. Dollar Index and the Commercial Traders COT Futures and Options Stochastic Weighted Average of Net Long As A % of Open Interest:

COT Money Flow Table:

Money flows of interest -

US TBd (20 Years +) and the Commercial Traders COT Futures and Options Stochastic Weighted Average of Net Long As A % of Open Interest:

The battle in the long bond market, dubbed custers last stand, intensified on cue as price dipped towards neckline support.

Yen and the Commercial Traders COT Futures and Options Stochastic Weighted Average of Net Long As A % of Open Interest:

The money flow dynamic between the Commercials and Specs has been extremely consistent in the Yen since 2007.

Source: Trader Dan Comments On The COT Chart Of The USDX