The Brains Trust - 2016, page-10557

I don't follow the treasuries as it's juiced up by central banks. The COT positioning by non-commercials on USTs is the exact opposite of their positions on stocks. They're bullish stocks and bearish on USTs. However, these sharks trade long-term, so cannot be used to predict week on week unless there is a drastic shift in positions. So far, there has been no shift in positions - bullish bets continue to pile into stocks and this weak, some bearish bets on bonds.

There are some very clever traders who make money by trading against non-commercials(large specs). They suggest fading and going short on the DOW because the positioning by asset managers and leveraged money is extremely high (85%). So they reckon that big money will add to shorts but won't sell existing long positions(as they're bullish long-term). People have created trading systems based on COT and trade with the sharks and trade the same size position at all times. They 'index' by following big money. Up to you what you want to do though.

However, I am interested in buying SPX below 2145 and expect a test of 2130. I'm not a buyer at this stage as the market is falling, but have no intention to short as the long-term trend is bullish. A lot of money to be made here buying good quality stocks during this mini sell-off