Professionals remain bearish with net short positions making up 8.7% of total open interest in all stock index futures. However, this is less than their extreme net short position of 9.95% from 3 weeks ago.
The oscillator continues to turn down from the high of early October, when there was an extreme divergence between rising Emini prices and increasing short positions taken by professionals. Emini traders should look for opportunities to sell short when this oscillator is in overbought territory.
Footnote: Back from a week off to find I have been banned from the excellent EliteTrader forum for my last post which contained links to this Commitment of Traders analysis. Apologies to EliteTrader for violating their forum policies – just trying to help my fellow traders. I hope they let me back in soon!
Stop Press: Joe at EliteTrader has let me back in! Hooray and thank you Joe.