I believe we are going to have a turn around in the next few days. I also believe the price is very close to bottom and you better be ready, because when it spikes you are going to have a hard time buying when it does. here that freedom. LMAO
Commercials Betting On Big Dollar Downturn, October 03, 2014
The U.S. Dollar Index has recently been in one of the biggest blowoff moves we have seen in years. The lesson of the past blowoffs is that the downward slope out of the eventual top tends to symmetrically match the slope of the advance up into it.
This week’s chart shows us that the commercial traders of various currency futures contracts are already making a huge bet on a dollar decline. The indicator in the chart is one that I created several years ago by combining the commercial traders’ net position in multiple currency futures contracts into a single indicator. It does not include all of the currency related contracts which are now featured in the most recent Commitment of Traders (COT) reports, because they do not all have the same lengthy and consistent history of reporting. This indicator combines the commercials’ net position in the euro, yen, pound, Mexican peso, Swiss franc, Canadian dollar, and US Dollar Index futures, each weighted according to the dollar value of each position.
The current reading is the highest in the history of this indicator, which dates back to the creation of the euro currency in 1999. That is another way of saying that the “smart money” commercial traders are making a huge bet that this uptrend in the dollar is going to reverse itself. Commercial traders are often early in adopting a lopsided position, but they are nearly always proven to be correct.
This same lopsided position is also apparent when we look at the commercials’ positions in the individual contracts. Here is a chart showing the commercials’ net position in just the Dollar Index futures:
http://www.mcoscillator.com/learning_center/weekly_chart/commercials_betting_on_big_dollar_downturn/