[OpenFX] COT 10-01-10

Hi Traders,

A good Sunday afternoon to you!

Well, they're gloating in Alabama, today, and deservedly so. The Tide rolled and the Gators rolled-over; heck, the University of Florida pretty much looked like the US Dollar (and on national TV, no less) last night: Weak. Sorry to the Gator Nation, but I'm just sayin'. Yes, yes, and okay, we're a "young" team and rebuilding. True enough. The dollar on the other hand....

For those who want the latest COT sheet music, go here:

http://finance.groups.yahoo.com/group/OpenFX/files/COT/

Just a couple of things here. First, the mighty buck? Not so much. Basically, it got the tar beat out it last week as the euro screamed right along side of gold. Where's the top? Hm.

According to the COT charts, the euro has room to the upside; the commercials and specs are NOT at extremes. Same does for the commodity currencies, AUD, CAD, sans NZD.

And the US Dollar index? No extremes there, either. Hey, what can you really expect when there's talk of "quantitative easing" circulating by the head of that private bank (but disguised not to look like one) in charge of the US's monetary policy? After all, don't investors like higher yields? (Not a trick question.)

GBP has been stalling at a Fibonacci retracement level (100%) and you'll see on the daily price chart the August highs have provided solid resistance... so far. That said, the push up from the September low comes with reduced momentum. I'd watch this area closely, as the pattern is a "cup and handle" and a break above the highs shows a 1.272 Fibonacci extension near 1.6200.

Both gold and silver are at extremes, with the commercials net short and specs net long; of course, gold is at historic highs, too, with no signs of momentum letting up.

http://finance.groups.yahoo.com/group/OpenFX/files/COT/

I'll have some exciting news for you later in the week; stay tuned, because you'll have the chance to get free trade calls and market insights VERY soon. More later.

Enjoy the rest of your Sunday and...

Be very well!

Clay