There’s a common theme in Commodity Commitment of Traders Reports.  The commercial hedgers are selling all the contracts they can.  Oil, Copper, Silver, Cotton, Nat Gas, it doesn’t matter.

We’ve already seen signs of weakness in energy stocks for months (although there is a decent last gasp setup now).  Leading Commodity play Freeport McMoran had an amazing setup come up very short of upside targets.  Now Industrial Metals are stalling out and breaking down.

Shout out to Free CoT data for the charts.

WTI_Crude Oil


Silver (1)


What do all of these industry pros know that market participants don’t?  It really makes one wonder what is going on here.

Is it as simple as a stronger U.S. Dollar or just a weaker economy?  It would be nice to know.  It doesn’t really matter.   Regardless, this is something worth following closely in the weeks ahead.

Trade ’em well