Trade Point Technologies

	Net New (Long/Short) Commercial Trade

	This page describes and demonstrates our calculation of Net New (Long or Short) Commercial Trade for the current session or over any set of sessions. The indicator reports on whether commercials, as we calculate, are adding to shorts or longs and the degree to which they are net long or short at that moment. The first graph below shows a recent June 2010 shot of the ES. Net New Trade as well as our calculation of the balance of trade/order flow are shown in the sub-graphs. The graph demonstrates that both Net New Trade and The Balance of Trade indicators started to trend up BEFORE price formed this local low that proved good for a 10 point leg. The second chart down was taken on the day of an FOMC announcement. The chart plainly shows price as flat for the 3-4 hours before the announcement but that NNT reflected strong buying. After the announcement, in just over one hour, price ran up over 20 points. So often it seems like someone knew something and this is a way to track them.

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