Tag: Commitment of Traders (COT)

What OPEC Cut Is Priced-Into The Crude Oil Market?

Posted on by Robert Boslego

Robert Boslego - INO.com Contributor - Energies


As all seasoned traders know, oil futures contracts reflect the market’s probability-weighted price expectations. In addition, I believe that the market provides a risk premium to the long side which underprices oil to some extent.

One important question now is how much of a potential OPEC/Non-OPEC cut is already priced into futures contracts? The answer determines the risk-reward to being long or short, depending on the outcome of the 171st OPEC Meeting on November 30th.

Before going further, there is no definitive financial theory or procedure of telling specifically. So I have to make some informed guesses based on possible outcomes and past market reactions. Continue reading "What OPEC Cut Is Priced-Into The Crude Oil Market?" →

Remembering Gold's Bullish Set-Up on Dec. 1, 2015

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Precious metals expert Michael Ballanger compares the Dec. 1, 2015 Gold COT Report with the latest one; the contrasts could not be greater.

Ballanger COT Report Gold

I have a question: "Does ANYONE have the foggiest recollection of just how incredibly bullish the Gold COT (Commitment of Traders) Report structure was back on Dec. 1, 2015?" Continue reading "Remembering Gold's Bullish Set-Up on Dec. 1, 2015" →

George Soros Making Big Bets on Gold

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George Soros has joined fellow billionaire investors Stan Druckenmiller and Ray Dalios on investing big in gold. Precious metals expert Michael Ballanger explains what is behind these moves.

This week George Soros once again came out with his very large directional "bets" for the SP 500 and for gold and, needless to say, Mr. Soros is once again shorting the SP and buying gold and gold miners, joining Ray Dalio, Stanley Druckenmiller and Michael Ballanger (just kidding) in a decidedly unpopular stance. Carl Icahn came out in agreement during a CNBC interview this week that left the interviewer near-speechless and groveling in the mud of anti-Wall Street rhetoric.

In the meantime, some of the smartest investors I know are SOOOO bullish on gold that they are buying huge baskets of penny explorers under a nickel because of the leverage contained when the public finally decides to re-allocate to include gold (and mining stocks). A fund manager I know said to me, "Must be the top!" in reference to this, but it really can't be the top after a five-month rally representing the largest recorded quarterly advance in mining shares since recordkeeping began.

Look at the chart above and think what would happen if we were to get a shift from bonds to gold; 49% of global asset allocations reside in bonds while 1% reside in gold. Now, consider these two facts: Continue reading "George Soros Making Big Bets on Gold" →

The Numbers Add Up to Vindication for a Cautious Gold Bull...

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Precious metals expert Michael Ballanger discusses the importance of caution and timing in gold investment.

Back in early March, with the HUI screaming along north of 150, I published "Patiently Climbing Aboard the New Golden Bull," in which I opined that we had entered a brand-spanking-new bull market in precious metals and related equities. But I also noted that, with the Relative Strength Index (RSI) above 85 on the daily SPDR Gold Trust ETF (GLD) and approaching 80 on the daily NYSE.Arca Gold BUGS Index (HUI), the short-term outlook was less than appealing, while the intermediate and long-term outlook was unequivocally bullish for the first time in five long years. Continue reading "The Numbers Add Up to Vindication for a Cautious Gold Bull..." →

Jack Chan Sees New Major Buy Signal For Gold But Is Patient

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Technical analyst Jack Chan has examined the charts and says the gold sector is on a new major buy signal, which could signal a new bull market. But he is patiently waiting for confirmation.

Chart 1

The gold sector is on a new major buy signal, therefore opening the opportunity of a new bull market. However, Commitment of Traders (COT) data remains in bear market values and is now at levels of previous tops. I remain patient and wait for confirmation, which is when speculation according to published COT data has returned to bull market values, and the 2015 high in gold prices near $1,300/oz is exceeded to the upside.

$HUI is on a new long-term buy signal, ending the sell signal from early 2012. (See chart above).

Long-term signals can last for months and years and are more suitable for the long-term investors. Continue reading "Jack Chan Sees New Major Buy Signal For Gold But Is Patient" →