It's Just Not Good Risk/Reward!
GOLD and SILVER COT Helps with Trend Exit
You do not have to be a contrarian trader to use the COT. I have said several times that COT data, CMR Charts and Index can be a great tool to help identify when the reward to risk ratio on a trend following trade is no longer there and two great examples are Gold and Silver. If you were long either one of these metals and you saw the COT get max crowded long by Large Speculators, that should have been the first sign to proceed with caution. Then came the additional buying on a week when both had a reversal day as shown in the charts below, which at a minimum should have told trend followers to reduce size or exit the trade, since reward/risk was not there and there is less fuel to drive price higher. Our goal is to teach traders how to use COT data and improve current process/strategy, since positioning is the ultimate discounting mechanism. Thanks for reading!
Since we have not offered a discount code in a while, we will bring back our SUBSTACK10 code for this week, which should be good through end of this week. It will discount any membership by 10% for the life of the of the membership.
Hope you enjoyed today’s post. If you are interested in learning more about the Crowded Market Report and the services we provide, which includes more in depth analysis of all major markets including Equities, Currencies, Crypto, Fixed Income, Precious Metals, Industrial Metals, Softs, Grains and more, please visit www.crowdedmarketreport.com.
Thanks,
Jason Shapiro & The CMR Team
CMR Publishing LLC is a content provider and publisher and is not a registered broker-dealer. By accessing Crowded Market Report websites and/or using Crowded Market Report products and services, including without limitation Substack and any and all content available on or through the Service and via email, you understand and agree that the material provided in CMR Publishing LLC dba Crowded Market Report products and services is for informational and educational purposes only, and that no mention of a particular security in any Crowded Market Report product or service constitutes a recommendation to buy, sell, or hold that or any other security, or that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person. This content is for educational purposes only.