The Commitment Of Traders Report by Jon Anderson
The numbers reveal plenty about market participation.
There are two basic ways to analyze the futures
market: technically and fundamentally. Many
traders have a purely technical approach, with
total disregard for the fundamentals. While that
can be profitable, it can also allow you to be
blindsided by the market. It pays to know the
fundamentals, because they can help you anticipate which
direction the market will move.
But trading purely on fundamentals is also dangerous.
Fundamentalists calculate a value for a specific commodity
based on the laws of supply and demand. At some
point, a given commodity may become cheap or
expensive in relation to supply and demand. By
quantifying the sentiment level among various
traders, valuable information is added to the
mix. This is the purpose of the Commitment of