ES Journal Archive (2006 - 2008)

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Quote from PaperTrader:

B1S2-

This little nugget on Stephen Vita's site, "The Alchemy of Trading":

"...the Commercials, the so-called "smart money" in the S&P 500 futures have ramped up their net short position to the highest level in more three years. Steve Briese, who wrote the book on Commitments Of Trader interpretation, calls that a "major sell signal."

Of course, you'd better have DEEP pockets to play their game.

PaperTrader
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And more power to them;
shorts help fuel the rally when they cover,
as Art Cashin said, director of floor operations.

Spring season started March 20.:cool:
 
Quote from murray t turtle:

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And more power to them;
shorts help fuel the rally when they cover,
as Art Cashin said, director of floor operations.

Spring season started March 20.:cool:
More...

Great to get another post from you Murray!!
It is true that short covering can accelerate a rally. One point to remember though is that if the shorts are deep pocket commercials, then there will be less panic short covering and more likely, a dip in prices. However, if the shorts are speculators, then look out above.
 
I've implemented the system that NihabaAshi uses in this morning's trading session, I must admit it was spot on in all 3 trades, actually yesterday as well. B1S2 perhaps you would like to check it out, it might work better during certain days, when your system can not establish clear entry signals.
 
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