Hello, I'd like to share my view on the CoT Reports and how to profit from it.
The CFTC publishes tons of data regarding the positioning of the different participants in the futures market. What can we get from these reports?
Well, it seems to me that one of the keys is to look at the non-commercial activity. The participants that folds into that label are Hedge Funds and other Money Managers. We can have a clear picture of the speculative flow of money. On the other hand, the commercial activity could show hedging positions that we are not interested in. There are other CoT related posts so it would be interesting to chat about it.
Site for downloads www.cftc.gov/MarketReports/CommitmentsofTraders/HistoricalCompressed/index.htm Once you get the spreadsheet it looks like this for the Canadian dollar future /6C :
Look at Colums O and P where you can see the number of contracts (Volume) held by non-commercials. 10,222 long vs. 37,067 short. Therefore a Net Short of 26,845 contracts. And it's been a short for over a month, in sympathy with the oil markets! :faint:
Long story short, it can be an excellent information for timing a trade! :)