Saturday, September 4, 2010

Currency Money Flows About To Go Loonie?

Commercial traders are quietly buying the Canadian dollar (Loonie) into weakness.

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


Nonreportables or retail money, yet to produce a statistical buy signal, continues to sell into weakness. Retail money tends to buy strength and sell weakness which usually puts them on the wrong side of the trade.

Canadian Dollar and the Nonreportable Traders COT Futures and Options Stochastic Weighted Average of Net Long As A % of Open Interest:


New highs REV(E) without confirmation from price in 2010 suggests a bullish setup in trend energy. Increasing trend energy tends to foreshadow upside moves.

Canadian Dollar (Loonie) ETF (FXC):


Don't loose sight of the fact that gold continues to outperform not only the Loonie but also all fiat.

Gold in Canadian Dollars:

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