Am I right in assuming that you are a position trader.. you look at the week's COT report. ... enter a position when you see the extremes...(obvisouly in the same direction as the commercials).... wait a few weeks and collect profits?
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DislikedHi Viv108,
(sorry for my late reply, was enjoying the weekend )
I believe you are correct in the assumption that Commercials are not trading in the same fashion as Large Speculators, but I don’t think it necessarily means that they are not as active.
One must understand that for Commercials, the futures markets provide a hedging opportunity which is the main reason why they trade. They need to hedge the risks for their normal businesses. An airline company might buy energy futures when they feel that the prices are low… let’s say that Delta...Ignored
DislikedHi everyone,
Let me know if you are interested in any specific market, I’ll try to analyze it for you!
All the best,
DunstanIgnored
DislikedHi Custos,
I must disagree with your statement that the report is good only for the futures market. It is also very useful for those traders, who trade forex or options on futures as well.
The COT report has two data types: Futures only and Futures and Options.Ignored