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Hi Steve
We are talking about reporting Commercials aren't we? ... and Producers with
a Capital "P" <G>
But since I'm such a wicked mouth piece for exchange literature <G> ...
maybe you could help me out with "...have taken advantage of hedging
margins, but have always been "long in the field and long on the board".
..."
Best regards
Walter
PS: For others that wrote ... I received this back from the author of the
Futures Mag article on COT analysis.
"... when Producers cover short positions they just REDUCE their total
shorts--I don't believe they ever go net long (likewise for Users selling
their long positions).
I get my COT data from the CFTC website, but I don't use spreadsheets; I
save the data as a text file & import it into my own programs. ..."
----- Original Message -----
From: "Steve Karnish" <kernish@xxxxxxxxxxxx>
To: <metastock@xxxxxxxxxxxxx>
Sent: Wednesday, April 26, 2000 5:46 PM
Subject: Re: KW0K/KW0N
| "Producers are usually short in the market. Because Producers are going to
| deliver product against their short
| positions, they rarely go long."
|
| Walter,
|
| Nothing could be farther from the truth than the above statement. My, my,
| my Walter...please don't influence "young and tender" newbies with such
| wickedly false sentences, gleaned from exchange literature. I've traded
for
| hundreds of producers (grain, cattle, pig, metal and "you-name-it"
| producers) and 99% of them have taken advantage of hedging margins, but
have
| always been "long in the field and long on the board". It's just the way
it
| is. I'm not saying it's the right thing to do. All I'm saying is: that's
| the way it is.
|
| The truth is out there,
|
| Steve Karnish
| Cedar Creek Trading
| http://www.cedarcreektrading.com
|
|
| ----- Original Message -----
| From: Walter Lake <wlake@xxxxxxxxx>
| To: <metastock@xxxxxxxxxxxxx>
| Sent: Wednesday, April 26, 2000 12:47 PM
| Subject: Re: KW0K/KW0N
|
|
| > To Steve and Scheier and others who wrote
| >
| > "... My experience with the commercials is that they accumulate a long
| > position often well before the bottom has arrived, and even more of
| > interest, will begin dumping this position long before the top. ..."
| >
| > Commercials are not a monolithic block but are composed of two separate
| > "hedger" groups in the grains complex: Users or "millers and bakers and
| > cereal makers, etc." and Producers i.e., farmers, elevators, etc..
| >
| > Both are hedging from different points of view.
| >
| > Users are usually long and Producers are usually short in the market.
| > Because Producers are going to deliver product against their short
| > positions, they rarely go long. The reverse is true for Users.
| >
| > This simplified explanation is how I understand the COT positions. Maybe
| you
| > could explain some more about how to think about how to trade against
| > (contrarian maybe) hedging strategies Steve.
| >
| > Commercials are positioned for a longer time frame.
| >
| > The Funds are where the "danger" or "opportunity" lies. This is why the
| > Research Departments track their positions so carefully.
| >
| > Best regards
| >
| > Walter
| >
| > PS: For others who wrote here's an end-on look at the last 30 years of
SK
| > front months. It'll give you an idea of how flat they are and cheap Vs
| dear.
| > You can do the same with the spreads. Seasonalities are different. If
you
| > don't like using Demetra then you can use "P" values for the dailies.
| >
| > ----- Original Message -----
| > From: "scheier" <scheier@xxxxxxxxx>
| > To: <metastock@xxxxxxxxxxxxx>
| > Sent: Wednesday, April 26, 2000 9:55 AM
| > Subject: Re: KW0K/KW0N
| >
| >
| > | The question I guess is whether you should ever buck the
| > | commercials in the commitment of traders report as they
| > | accumulate a position, in this case, the grains. I think you have
| > | to consider whether your system is designed to trade short term
| > | signals or you're a longer term trend follower. I don't see it very
| > | relevant for Adam's P&L techniques, and even's Steve K's
| > | oscillator signals could continue to give accurate calls for short
| > | term cycles while the commercials continue to accumulate.
| > | My experience with the commercials is that they accumulate a
| > | long position often well before the bottom has arrived, and even
| >
| >
|
|