Traders' Roundtable

So...who uses the commitment of traders report for timing?

I've been using it to help with my stock trades (actually it's quite fine on its own). Wondering how many use it for commodities? If not, why? Never heard of it, don't think it works? Let's discuss.

D

Not me. However I did enjoy reading these two books about it:

• Larry Williams: Trade Stocks & Commodities with the Insiders: Secrets of the COT Report (link)
• Floyd Upperman: Commitments of Traders : Strategies for Tracking the Market and Trading Profitably (link)

Hi. I'd be interested to hear your thoughts on this. I have never heard of the COT report, and would be considered extremely knowledgeable about the markets. What is this & what drove you to post regarding this report? Obviously you see something there that you feel is worth discussing. I am always looking for new info and different views on the market.

specularii

First, read Larry's book. It's not bad, although it's not how I use the COT.

Knowing how the dumb money is positioned can really help with timing, although Larry tends to paint a rosey picture with his indicators. Still, just a slight edge combined with trading systems helps a great deal. Kind of like using a long-term MA cross-over or MACD when trading the turtle system or other trend-following systems.

D

http://www.cftc.gov/marketreports/commi ... /index.htm

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