The Commitments of Traders Report (COT) is a weekly report of the government, knowing that the extreme, what is money "smart" precious "at the various futures markets. This is a report for each futures market. Although COT reports for years, the average investor does not know, not only know how to use it, not once, but it exists.
To read the report COT
Here's what happens – the government, particularly the Commodity Futures Trading Commission(CFTC) requires that all those who have a number of forward contracts over a certain limit, will be held to review their positions. For example, the threshold for the S & P futures are currently 1000 contracts. Therefore present only the truly great players. But 70% to 90% of all outstanding futures contracts.
Here's where to see the reports for different markets …
http://www.cftc.gov/cftc/cftccotreports.htm
The report will be published Friday (except holidays), basedData from the previous Tuesday. So that the information was published three days after the crime. Which is ok, because soon enough precious.
Column headings at the top of the report will be classified as non-commercial, trade and NONREPORTABLE POSITIONS.
If an account reported to the CFTC as holding positions above the specified level of alert, the number of contracts, the CFTC determines whether the account is a commercial hedger or large speculators.
Business –The CFTC classifies a futures account, which corresponds to the level of coverage, as ad spots "where the account holder files a statement with the Commission, which says that is commercially available in the activities covered by the use of futures market involved. They are the ones who are most concerned, for example, traders of S & P futures are the major institutional players like banks, pension funds, mutual funds, hedge funds and tradePart of Wall Street firms.
Non-commercial – than non-commercial are "large speculators". They do not deal in shares as part of the business. An example of a large speculative accounts could be a large market (pool of a fund) that trades futures for speculative profit. Managed futures accounts in billions of dollars and if they meet the numbers were their positions at the CFTC reported for monitoring.
NonreportablePositions – all traders, trade issues and speculation that smaller objects are considered as the level of declaration, as speculators "small". In other words, are all the others who participated in the futures markets – the proverbial "little fish".
The three players
To learn how to use the COT data, it is important to look more closely at the three types of players, the focus of report – traders, large speculators are taking, and small speculators. Wewant to know what each of them tick.
Traders dominate the market. That fact was not really a surprise for everyone, given the nature of what the commercials. For example, in the S & P futures market are banks, pension funds, mutual funds, the Wall Street brokerage houses and the like. They have large research departments and insider information that is simply not available in time for the average investor.
They also dominatebecause of their vastness. They are so big that are market realities. So, traders are those who are most concerned: We will try to determine what they are doing and day. History has shown that traders are in most futures markets for these issues right, most of the time. And if I'm wrong, are rarely wrong, very long. You will eventually end up on the right side of the market, both on the head ordown.
Large speculators tend to be trend followers. Once the market provides a trend upward or downward move in the direction of the trend. And 'interesting to know what they are doing on the market, but was not essential to your decision making.
The small speculators are usually on the wrong side of the market. In fact, it was estimated that up to 90% of small distributors money in futures markets. They tend to serve as "cannon fodder" forbig traders. Still, the smart money has to have someone of the opposite side of their craft. Small speculators are generally willing to assume this role. I remember the Harlem Globetrotters against the Washington Generals. The spots are the Globetrotters. The small speculators are the generals – the scapegoats who are forced to lose.
Commercial dealers are those who follow. They are the "smart money". If it is an extremely long or short, with regardtheir positions in the past, is a reliable indicator of market development.
Chewable Vitamins