One other thought re: the COT here...
I copied this from another thread...
COT report by my calculations from futures only form through Tuesday 02/04/2003. Commercials net short 51,135 S&P 500 contracts (increase of 4,558 short from prior week), net long 102,953 E-mini S&P contracts (increase of 82,354 long contracts from prior week), net short 10,058 Naz 100 contracts (decrease of 1,308 short from prior week), and net long 51,333 Naz E-mini contracts (increase of 14,781 long from prior week).
Couple of eye catchers here. These guys took a big jump to the long side on the e-mini S&P. And non-commercials are now big time short here. In fact there was an increase to the short side by 36,908 contracts by non-commercials and by 45,556 from the non-reportable traders whoever they are.
Similar move on the e-mini Naz contract. Of the 14,781 position move to the long side here fully 13,082 of the opposite sides of those were taken short by non-commercials.
Can you smell a setup to squeeze the little guy who's been shorting the drop and who probably shorted the range breakdowns because his technicals told him to? It certainly wouldn't be the first time and I know it won't be the last if it happens.
And when are we going to start hearing about financial armageddon for the options writers if we drop much further?
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