Want to cut all the market noise? Just follow what the commercials do.
Lian Beng - SGX
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Lian Beng - SGX
After months of being range-bound, looks like a strong long signal has been triggered. Commercials are buying and it just penetrated resistance at 0.35.
For those of you not familiar with the Commitments of Traders Report, COT Proxy, you might want to check out this website Larry Williams Picture Perfect Trading for a brief introduction. I attended one of his Picture Perfect courses a few years ago and this was one of the things he touched on. The COT report is released by the US Commodity Futures Trading Commission where they show the open positions of traders for futures contracts. For stocks and other instruments there is no such COT report released so what the proxy has done is to simulate/gauge the open positions of these traders.
If you are interested to know more the basics of of the Commitments of Traders Report (COT Proxy) you can visit Larry's website here http://www.ireallytrade.com/ or straight to the COT Proxy page here http://www.ireallytrade.com/cotreport.html
Now that we have seen the power of the COT Proxy, we will apply it in instruments such as stocks. We will look into SGX stocks in particular and how we can use the Proxy to make better decisions in trading/investing! Look out for the next post!
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