Pete talks about the Commitment of Traders report and how to interpret all of the information. Determining market direction is an important element of successful future trading.
The Commitment of Traders Report is a report that provides a snapshot of the position of large institutional traders and small speculators in each commodity futures category.
This special report is released each week by the Commodity Futures Trading Commission on Fridays. The raw data from the report is a little bit dense, but the report essentially shows the net long/short positions for each available futures contract for three types of traders:
Knowing what the non-commercial traders are doing (based on the report data) may give us some idea about the trend for a particular asset.
Here is what you can look at:
When looking at the COT report, commercial positioning is less relevant than noncommercial positioning. Noncommercial data is more reliable because it captures traders positions in a specific market.
There are three primary premises on which to base trading with the COT data:
Were not done analyzing the Commitment of Traders Report, catch part two here!
Strategies: Spread
Products Discussed In This Episode: /M6E, /M6B
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