FxPro Daily Report

Speculators are short the Euros for the first time since early in 2009. This is a bullish sign for the US dollar. The COT Index is the percentile of the difference between net speculative positioning and net commercial positioning measured over a specific number of weeks (13). A reading close to 0 is bearish if the currency in question has reversed from a uptrend and is bullish if the currency has been declining for a significant amount of time. A reading close to 100 is bullish if the currency in question has reversed from a downtrend and is bearish if the currency has been rallying for a significant amount of time. Readings of 95 and higher as well as 5 and lower are in boldfaced red type to indicate potential market extremes. For example, an increasing index is bullish until the index is extreme (near 100), at which time the risk of a reversal or pause in the trend increases. Read more: DailyFX - Speculators Pile on US Dollar Long Positions http://www.dailyfx.com/forex/technical/article/cot/2009-12-11-2209-Speculators_Pile_on_US_Dollar.html#ixzz0bFhl28Ty