CAD index full analysis #2
Chart with the dealers, classic and simple to understand. They are still net buyers (but decreasing)
Chart regarding assets managers. They usually add the most at tops/bottoms. Lately ? They have added a lot of CAD longs.
Its way too soon to talk about reversal, but watch out
Money managers are trend followers, they add the most at tops/bottoms before reversing. What's happening lately? As price rose, they went super short, is it a trap ?
This chart represent the short side of the money managers
Red and green circles are the classic moves. Now check the blue circles, you would have guessed they went heavy short so price may rise, but it didn't happen.
Why ? because the heavy selling happened after a rise of price, and not at a bottom. Money managers can be right as well.
Now i'd be cautious as they are heavy shorts after a rise of prices. It can still rise though, i guess more selling will occur if it happens.
Positionning of the CAD traders here. They are too shorts, but retreating so far.
Weekly system agrees with the COT report. Its still CAD buying (usdcad selling) but positionning is retreating quickly
My advice here is that CAD is still a buy, but i'd wait and see for weaknesses in price so sell into it and buy lower as the market participants are still buyers, but money managers are very loaded in shorts (hence it can drop)
Chart with the dealers, classic and simple to understand. They are still net buyers (but decreasing)
Chart regarding assets managers. They usually add the most at tops/bottoms. Lately ? They have added a lot of CAD longs.
Its way too soon to talk about reversal, but watch out
Money managers are trend followers, they add the most at tops/bottoms before reversing. What's happening lately? As price rose, they went super short, is it a trap ?
This chart represent the short side of the money managers
Red and green circles are the classic moves. Now check the blue circles, you would have guessed they went heavy short so price may rise, but it didn't happen.
Why ? because the heavy selling happened after a rise of price, and not at a bottom. Money managers can be right as well.
Now i'd be cautious as they are heavy shorts after a rise of prices. It can still rise though, i guess more selling will occur if it happens.
Positionning of the CAD traders here. They are too shorts, but retreating so far.
Weekly system agrees with the COT report. Its still CAD buying (usdcad selling) but positionning is retreating quickly
My advice here is that CAD is still a buy, but i'd wait and see for weaknesses in price so sell into it and buy lower as the market participants are still buyers, but money managers are very loaded in shorts (hence it can drop)
COT: The precious data ignored
Along with others
A 50% dip will be bought in the years to come, classic stuff!
