I was hesitant to call market top last week and I still am. I do not see a single indicator pointing at market peak. Now, the plateau situation is also possible but we are not there yet.
Weekly Summary - Speculators
Index of speculators is 98%. Previous reading was 94%.
During the week speculators were buying at low speed. They bought 4405 contracts. Last 3 weeks show sporadic selling pattern.
Speculators index sits at extreme levels. During last weeks index moved away from extreme values. Current market balance indicates limited bullish potential (and good potential for bears), however this indicator alone is not enough to make good decisions.
Weekly Summary - Producers
Index of producers is 18%. Previous reading was 23%.
During the week producers were selling at low speed. They sold 4064 contracts. Last 3 weeks show sporadic buying pattern.
Producers index sits in the lower quartile. During last weeks index moved away from extreme values. Current market balance indicates limited bullish potential (and good potential for bears), however this indicator alone is not enough to make good decisions.
Further analysis is on my site https://www.valknut-analytical.com
Speaking of other markets zones of depression and euphoria:
- gold is still in euphoria zone, no reason to short the market, there is still bullish potential,
- cotton - I strongly believe the market has bottomed as I thought last week,
- soybeans have bottomed in my opinion. Speculators have been quietly buying last few weeks,
- gasoline is still in depression zone,
- nat gas entered depression zone eventhough speculators have not sold their substantial long position. Should they decide to do it now, the market will be doomed for a long slide. But let us see for more signals.
Happy trading!
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