🔵 Deep Dive into Commitments of Traders
1. Total Positions (All):
Both long and short positions increased significantly,long positions grew slightly more than short positions in absolute numbers, but short positions remain dominant.
2. Commercial Positions:
Commercial traders increased their short positions significantly (+718), while long positions remained unchanged, showing a clear bearish outlook.
3. Large Speculators:
Large speculators increased both their long and short positions, with a greater focus on long positions.
This suggests mixed sentiment but a slight bullish lean.
4. Small Traders:
Small traders marginally increased both their long and short positions, with a stronger focus on short positions, reflecting caution or bearish sentiment.
5. Open Interest:
A significant increase in open interest indicates greater participation and higher market activity, potentially leading to more volatility.
In short:
Commercial Traders: Bearish sentiment strengthened due to the rise in short positions and stagnant long positions.
Large Speculators: Show a mixed sentiment with a slight bullish bias due to the higher increase in long positions.
Small Traders: Leaning bearish due to the focus on short positions.
🔥 COT Trend: The market remains neutral to bearish, with growing short positions outpacing long positions slightly.
🔵 What Did Traders Do Between Reports?
Commercial Traders:
◾Increased short positions significantly (+718 contracts).
◾Long positions remained stagnant.
Action: Strengthened their bearish position.
Large Speculators:
◾Increased both long (+1,905) and short positions (+1,014), with a stronger focus on longs.
Action: Became more active, but leaned toward bullish positions.
Small Traders:
◾Slightly increased both long and short positions, with a greater focus on shorts (+184).
Action: Displayed cautious behavior, leaning bearish.
The commercial traders have shown a clear bearish sentiment, which, as you know, often signals that they are hedging in anticipation of the market's next move.
The key level of the whales can be pinpointed to November 13th, 14th, and 15th.
As a trader, I typically position myself to bet on the upside, but only within the whale zone.
But with this report I'm neutral this week, I will look at the next report next Friday.
See previous posts for Bitcoin analysis.
