The Off The Charts segment of Mad Money featured DeCarley Trading analysis written by futures broker, Carley Garner, on the August 12th show. Jim Cramer and Garner analyzed the COT (Commitments of Traders) Report along with technical analysis in regard to the S&P 500.
Ironically, at a time in which economic data and politics are least predictable, it appears as though traders have placed large bets in both stocks and 10-year Treasury notes. According to the latest COT (Commitments of Traders) report issued by the CFTC (Commodity Futures Trading Commission) futures speculators are holding outsized net short positions in the E-mini S&P and net long positions in the 10-year note. For instance, when looking at the combined positions of both large and short speculators, these groups are holding the most aggressive long position in the 10-year note in the last 52 weeks and the second-largest net short position in the E-mini S&P in the same time frame. While these positions have been accumulated over months, with traders mostly shifted to the same side of the bus there is risk of fireworks and price squeezes.