What the COT Reports tell you
The largest powers in the marketplace are the Commercials. These are the large users and producers of the commodity. They do not use the commodity markets to speculate or directly make money in the markets. They are producers and users of the commodity, so they sell forward or hedge their production/demand. They use the markets for selling and delivery, not speculating.
The Large Traders are the second most dominant figure in the report. These are not quite what you think. They're not just large traders like some of us. They are nowadays, for the most part, commodity funds that are trying to speculate directly in the market.
Finally, there are the small traders, probably people like you… people who are trading in smaller amounts; the average trader. Interestingly enough, sometimes their record is very good in specific markets, but, usually they are wrong.
Tomorrow we explain how to use this information.
No comments:
Post a Comment