*SCALPSWINGSTRADDLE*

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Weekly ~S&P500 COT Update/Images~Power View {8/16/11}
Well well well...This is a fairly big moment in our Commitments tracking endeavor...The very first signs of the bottoming process are being signaled this past week...

Image # 1:

In the first image, we can see that there are major positioning shifts going on...This weeks report is something that we all will not see very much (because it doesn't happen that much)...
The Market Makers/Commercials have the lowest NET positional stance that I've ever seen...Definitely in the last six years...
Asset Managers have continued to be conservative in their positioning, which is a trend that has lasted several weeks...They already have the lowest amount of /ES risk in over a decade...
Hedge Funds used this small bounce to reduce a little basis/risk...
Other reportables increased their Short Positions back to record high levels (a potential sign that we have a bit more sideways to down action ahead)...
The biggest sign this week has to be the Retail traders...They finally got shook out of a substantial percent of their Long positions...
The key here is that the Commercials took those long positions for themselves instead of closing the contracts, (which would have been a big drop of open interest)...

This is something to recognize as extremely great value...

Image # 2:

Here you can see the absolutely extreme representation of the Commercials Net position viewed as a % of the entire Open Interest...
This is extremely rare...The Commercials are sending a signal that they want more exposure to the upside...
It makes perfect sense but still something that you don't see very often...

Image # 3:

Here in Image # 3 is another excellent relative view...Large Traders are still NET short for the second week in a row...
See the huge drop in the small trader/Retail category...
Note: One thing to be aware of is that Futures Margin requirements were raised this week (Interactive Brokers), so that could be a big reason that so many small traders are closing out positions at this time...
The Market Makers are trying to benefit from this occurrence and we are witnessing it right here...

Image # 4:

Finally, last data piece, which is also a huge reversal indicator...This week the Short positions are representing over 99% of the long positions...
Meaning for every (Buy-Side) 100 Long contracts there are currently 99 Short contracts...
This is true Situational Awareness...

Weekly Chart


Monthly Chart

Summary:
This weeks report is what this is all about (COT tracking)...being aware/conscious of Institutional positional behavior...
This report is giving us information that is not apparent on a technical level...or on any other level at that...
We have been given a gift this week...Something very big is going to happen in the next few weeks in terms of reversals...
Looking at the momentum as well as the daily chart (not shown), there still looks to be a little more downside flush which should atleast make new swing lows...
We have the recipite to what looks like a very powerful reversal is coming shortly...
This reversal could be short lived, but it should be very powerful...We need to look for a reversal after we make new lows...
This is not a Long term Investor reversal watch...This reversal is more catered to shorter term traders...It is a big opportunity to ride along with the Market Makers in a special situation, so I must mention it...
For Longer Term Investors, there's no reason to try to catch the bottom here...Even though some big things are currently going on,we still haven't seen Asset Managers heavily increase their Long Positions yet...

Good Trading to you all