Recent Extreme Readings In The COT Data…Similar To Seen In Gold

April 2, 2017

The Copper, Cotton and Crude Oil markets have recently registered COT numbers at multi-year extremes. The prices subsequently broke out to new highs, but failed to gain any traction. This is similar to what was seen in gold price last summer. A violation of the support lines will likely result in a domino of selling pressure.

Conversely, the US Treasury market numbers are very bullish. The weekly bond chart (see following page) has a bullish divergence in the MACD and RSI. This comes after a downside Capitulation in December. Note that each of the eleven times T-Bonds have been to the bottom of the 36-year channel the minimum rally has been 10 points ( ), providing a target of 156+ within the next two months.

If these false breakouts (through the blue lines) are followed by violations of the red lines we should see an acceleration of the moves similar to gold’s move to $1125 in December. (CHARTWORKS – 3/26/2017 2 CHARTWORKS – 3/26/2017 3)

Opinions in this report are solely those of the author. The information herein was obtained from various sources; however, we do not guarantee its accuracy or completeness. This research report is prepared for general circulation and is circulated for general information only. It does not have regard to the specific investment objectives, financial situation, and the needs regarding the appropriateness of investing in any securities or investment strategies discussed or recommended in this report and should understand that statements regarding future prospects may not be realized.

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BOB HOYE, INSTITUTIONAL ADVISORS EMAIL bhoye.institutionaladvisors@telus.net WEBSITE www.institutionaladvisors.com

Bob Hoye is the chief financial strategist of Institutional Advisers.

Gold is the world’s oldest and most known currency.