Trading Off 'Commercials'

Futures; ChicagoVol. 33 Nbr. 6, May 2004

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Summary


One of the main resources available on the Commodity Futures Trading Commission's Web site, www.cftc.gov, is the Commitments of Traders (COT) report. These reports provide valuable information of which many traders do not take advantage. COT reports contain general background information and detailed explanatory notes for the short form, the long form, and the options-and-futures-combined reports. Jason Goepfert, founder of Sundial Capital Research Inc., a company dedicated to the research and practical application of mass psychology to the financial markets, and president and CEO of SentimenTrader.com, says COT data can be highly useful. Aside from looking at the commercials on COT reports, Goepfert also pays attention to the non-reportable trader positions.

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Extract


Trading Off 'Commercials'

One of the main resources available on the Commodity Futures Trading Commission's Web site, www.cftc.gov, is the Commitments of Traders (COT) report. These reports provide valuable information of which many traders do not take advantage. While at one time this information was not easily accessible, the data have been available for free for some time, and many online experts provide insight for low or no cost.

THE DATA

COT reports contain general background inform...

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