COT Money Flows

The risk trade (rising equities, commodities, and related risk currencies), remains in the headline hot seat. While investors have all but given up on the devaluation trade, they are missing the leveraged inflows or setups in key “risk trade” markets. The large inflows in US equities but also key commodities and commodity related currencies, highlighted in the table below, suggest that connected players are fading the fear. As long as these money flows continue to fade the fear, it suggests, contrary to general consensus expectations, a return to risk in the coming weeks. I will be watching these leverage flows as the minor cycle date approaches. Weakness into the date implies reversal into the approaching major cycle date.

COT Money Flow Table: