13/12/2023
In the midst of market sentiment exuberance, a closer look into what the big guys are doing is always beneficial. I’m not saying that markets are about to explode, but seasonality helps sustain positivism while Nasdaq rebalancing (see my previous post) demands a certain position adjustment that will affect the market this Friday.
The Commodity Futures Trading Commission, or CFTC, publishes the Commitment of Traders report (COT) every Friday.
Because the CoT measures the net long and short positions taken by speculative traders and commercial traders, it is a great resource to gauge how heavily these market players are positioned in the market.
These are the hedgers (aka, commercial traders), large speculators, and retail traders (so called cannon fodders as they are being thrown at the battle just to kill themselves to open up space for the real troops).
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