Which Way is The “Smart Money” Going?
August 16, 2010 11:56 am
The Commitment of Traders or “COT” is often called the Smart Money/Dumb Money indicator. Retail is considered the dumb part of the index. (Don’t shoot the messenger!)
Even as we could consider that characterization to be well suited for all of the players at one time or another, it is well noted that often the retail investor is on the wrong side of the trade, or at least behind it.
(Hat Tip – Afraidtotrade)
(Click Chart to Enlarge)