Sunday 18 May 2014

Copper Bearish: COT Data Signal

One signal takes effect on the coming week's open of trading based on the latest Commitments of Traders data: bearish for copper.

That's based on commercial hedgers in copper future and options getting significantly bearish in their net position as a percentage of the total open interest, according to Friday's weekly COT update.

Large speculators had already had a bearish posture in their total open interest -- the other component of my copper signal.

See my latest signals table for more details on this and the other nine signals I trade using the COT data. My other existing signals remain the same this week.

Good luck this week.

4 comments:

Dan CA said...

Does anybody have a preferred ETF they use to track the price of copper?

Alex Roslin said...

Hi Dan,

I've used JJC in the past. That's not a recommendation.

Regards,
Alex

Dan CA said...

That's what I've used too but the volume is generally very low on it. I've been on the hunt for something with a little more volume.

Alex Roslin said...

Hi Dan,

Yes, volume could be higher, but it's generally above 50,000, which is the threshold I've seen some analysts suggest for a decent fill. Today, the avg daily volume for the past three months is 71,000, according to Yahoo Finance. The other funds have much poorer volume. Toronto used to have HKU and HKD, but those have stopped trading. I don't know of any other options unfortunately.

Regards,
Alex