Loading ...COT, Exhaustion and TD Combo Alerts in Gold
The last time we reported on the COT readings in gold was near the bottom on August 19, 2018; “Specs in Gold are Now Net Short – Daily Sequential & Combo Buys in GLD”. As of August 6, 2019 the Commercial and Speculative positions have reached levels not seen since the gold top in 2016.
While absolute levels of Commercial and Speculative positions are important, we are more interested in the excesses seen in the action around important reversals. The COT signals we utilize are reasonably rare, looking for the RSI(14) in both to be at an extreme while they are outside their Bollinger Bands(50,2). These criteria are in place now.
Last week saw a $100 rally, staying overbought and ‘Exhausted” for five consecutive days.
As of Friday, it has a completed TD Combo 13 Countdown, last seen around the January high. The Sequential countdown is at 12. One more