The U.S. government publishes a weekly report entitled “Obligations of economic operators” or “COT”, a very unique view of the futures and options market provides the inside.
The Commodity Futures Trading Commission (CFTC) is the U.S. government agency responsible for policing and regulation of trade in futures on U.S. markets and options. The agency tracks all trading takes place on these markets. The CFTC has the power and authority to control all commercial activities, there is a unique access to inside information concerning the identity of traders and their opinions. The information in the hands of futures and options traders can be very powerful. Many people believe that this information is traders always heavily guarded and individual, and in most countries is the case, but not the United States
The mission of the CFTC market is fair to all parties to avoid holding large and small, and price manipulation of view. To achieve this, the CFTC has given information to the public on a weekly basis. This information is in the commitments of traders (COT report contained “) at. The COT gives an overview of all positions, the largest market place. Making this information public, contribute to market transparency and provide the audience with some ability to police markets. There are also entrepreneurs access to a powerful tool. It helps to keep the playing field between the level of speculators, large and small, although this is not the desired effect. Access to weekly changes in the positions of large commercial producers, processors instead, and users of commodities in the world, the small entrepreneur with a wealth of information that can never be won by price indicators!
The weekly COT data provides individual traders with knowledge of changes in the hedging activities of commercial manufacturers, and speculative activity in the greater proportion of world leaders, and swap dealers. The CFTC publishes this information to the public in the week on the commitments of traders report (COT) at.
It always surprises me how few people even know to this report. And those who know little to really understand that information and know-how to use. I spent the last fifteen years studying the data and construction of all trading strategies for the information. Recently (2009), the CFTC has begun to improve the report and is now even further reductions of positions in order to clarify the various participants to strengthen market creation.
I am pleased that the U.S. government offers this wonderful service (no other government in the free world offers such a service) and yet I am always surprised how few people know that the report exists. If you trade futures, are considering the report, as the lights in a dark room! The positions are revealed to everyone. The report provides a detailed list of all positions and operators found (are) to keep the names of the categories. Amazing!
In 2006 started), the CFTC, a pilot project for the clear class business improvement, others have begun to grow through new business practices (pension funds and swap dealers activity . For these changes, the CFTC began with the introduction of this new report with the name “CIT” or commodity index traders report in twelve agricultural markets. The ITC report is known, the position of commercial producers and commercial customers on a weekly basis. These large commercial entities who use the futures market exposure for their money markets to cover the underlying physical.) For example, a consumer of energy (eg aircraft can use the futures markets as a form of insurance, the price of their energy in the future to block the payment. This is called coverage and reduces the risk of a company for future market fluctuations.
An airline that fuel it can use the futures market price for fuel over the next five years to block. This hedge their exposure to significantly higher prices over the next five years. If an unforeseen event that fuel prices rocket, why the company will not have to worry about how they got a price for a certain period (in this example) five years. These commercial producers and consumers are generally regarded as the group’s most famous traders in futures markets.
Trade groups in the report of the COT
Commercial companies are generally more on actual demand and supply than any other group distribution. There are two other categories of traders in the markets and their positions in the COT report is published. These are great merchants (Managed Money) positions and small speculators. Large dealers are generally funds such as hedge funds, whose price indicators are usually combined, such as the development of these techniques with basic information. It is interesting that most of the data that the government is reported (such as crop reports) of all traders. That’s why advertising in general are known as group “market.
The COT report is the kind of information you want to enter life, but few know that the U.S. government is that information publicly available on a weekly basis.
This information gave the public a “heads up” to a mass movement in and out of various futures markets, including stock on the United States. Consider the Nasdaq stock index at the height of the dotcom bubble at the beginning of last century. As quoted on the Nasdaq 5000 (all-time high) for the COT report showed that commercial distributors actually sell all their purchasing positions on the futures market and just over one weeks time had accumulated a record size short position in Nasdaq Futures!
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