Uncle Ti 88

Commitment of Traders Report COT CFTC - US Dollar Index - 13 December 2011 How would you use the COT US Dollar Index to trade EUR/USD? Above is the EUR/USD chart along with the COT chart for US Dollar Index (ICE Futures). The commercials are net short of the dollar since reporting date 11 September 2011. The EUR/USD has since gone downhill from there. Although there were some sort of a bull trap for the EUR/USD as you can see on 23 October 2011, if you have stayed with the commercials you would have avoided going long. Now the short position is still in play.

What a week last week has been. The big sell-off seems to continue till today's asian trading session. A lot of news and noise have been coming in. 1) Raising of US debt ceiling 2) Standard and Poor's downgrade of the U.S. credit rating 3) Concerns on Euro's debt crisis 4) Many more! Let us cut all these noise and see what the commercials (COT Proxy) are doing!