When Smart Money and Retail Traders Diverge
Counter-positioning occurs when institutions (commercials) and retailers (small traders) are at opposite extreme levels.
Since retailers are typically on the wrong side of trades, their extreme positioning opposite to institutions can signal potential trading opportunities.
This page detects counter-positioning when Institutions (Commercials) and Retailers (Small Traders) are at OPPOSITE extremes (80/20).
Based on "retailers are always wrong" theory. When institutions are extremely long (≥80%) and retailers extremely short (≤20%), it suggests bullish potential. Ignores Large Specs to focus purely on smart money vs dumb money divergence.
| Commodity | Category | Signal | Institutions | Retailers | Spread | Strength | Interpretation |
|---|---|---|---|---|---|---|---|
| Cocoa | Softs | Bullish | 100% | 2% | 98pts | 71% | Smart money (institutions) is positioned long at 100% while dumb money (retailers) is positioned short at 2%. This divergence historically suggests bullish potential. |
| Sugar No 11 | Softs | Bullish | 94% | 6% | 88pts | 61% | Smart money (institutions) is positioned long at 94% while dumb money (retailers) is positioned short at 6%. This divergence historically suggests bullish potential. |
| Copper | Metals | Bearish | 11% | 100% | 89pts | 60% | Smart money (institutions) is positioned short at 11% while dumb money (retailers) is positioned long at 100%. This divergence historically suggests bearish potential. |
| Gold | Metals | Bearish | 17% | 100% | 83pts | 53% | Smart money (institutions) is positioned short at 17% while dumb money (retailers) is positioned long at 100%. This divergence historically suggests bearish potential. |
| Crude Oil | Energy | Bullish | 97% | 16% | 81pts | 51% | Smart money (institutions) is positioned long at 97% while dumb money (retailers) is positioned short at 16%. This divergence historically suggests bullish potential. |