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>Also, his reliance on COT (a chart is provided in the article) as a "fund=
>amental" --- apparently he chooses to go with the direction of the commer=
>cial traders who are usually right --- however, my studying of an S&P COT=
> chart for last 4 to 6 months shows commercials were pretty wrong this ti=
>me around.
The commercial traders are usually "wrong" only from a speculator's
point of view. The commercials have their own agenda different from
speculators, and this includes hedging and scale trading (which will
look like being on the "wrong" side of the market to a speculator).
I bought one of Larry's courses where he went into this in detail.
He doesn't follow the commercials; he waits until they have reached
an extreme net long or short position and then trades in the
opposite direction. The idea here is that the commercials drive
the market turns -- that is, they scale trade, buying as the market
declines and selling as the market rises, and when the commercials
are exhausted to the point where they can't get any more net long or
net short, the market turns.
In the "Money Tree" course Larry would pin-point market turns in just
about any market (worked best in ags and metals) by waiting until the
commercial COT and the Bullish Consensus were diametrically opposed.
These are good set-ups.
--
,|___ Alex Matulich -- alex@xxxxxxxxxxxxxx
// +__> Director of Research and Development
// \
// __) Unicorn Research Corporation -- http://unicorn.us.com
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