Futures For You by Carley Garner
READING THE COT REPORT
How do I read the CFTC’s Cot report and should I be following the commercial or speculator groups?
You should be following the manner in which equity traders refer to Sec filings to determine the outlook of corporate officers in relation to their company stock. Commodity traders look to the Commitments of Traders (Cot) report for insight into who is buying and selling futures and options. The Cot report, which is released by the Commodity Futures Trading Commission (Cftc) at the end of each week, is a potentially valuable tool in determining market sentiment. Not only will this report reveal the level of bullishness or bearishness, but unlike other sentiment readings, it depicts traders actually putting their money where their mouths are!