Friday, May 11, 2007
COT report for May 11
The COT report for this week showed another increase in the net long position for the commercials. The combined net as a % of total open interest remained roughly the same as last week. Another interesting development, 5 more players jumped on the long side and only 1 more short was added. The commercials continue to build larger net long postions as the market goes up. This is very unusual and extremely bullish as the commercials are regression to the mean traders and normally increase their shorts as a hedge against a rising market. I really don't expect to get much of a correction in this market until the big boys start to short heavily again.