|
The Commodity Futures Trading Commission's comprehensive breakdown of who owns what in the futures markets is legal inside information, which makes the U.S. Futures the most transparent markets in the world. If you trade, you need to know what the COT report reveals.
You can monitor this report yourself at www.CommitmentsOfTraders.ORG, where Steve provides free COT charts and free COT data-and not just partial teaser files, the whole shebang from 1983 to the most current report is provided free. Why would Steve provide data and charts free when every other source charges for this? Principle: he believes in a level playing field and the COT report provides it. (When you get his book you will understand why you should not get you data anywhere else-let alone pay for it.)
The key to using the COT report to uncover markets with mega-move potential can be described in once sentence: Follow the lead of the large commercial hedger. You may read other advice, such as “follow the large speculator” in older trading books. Certainly the trend-following funds move markets. However, they are almost always fully invested in the wrong direction at important market turns. Commodity markets were invented by commercials in order to transfer their inventory risk to speculators. We have been at the mercy of these market insiders ever since. But by knowing what commercials are up to—by following their actual market manipulations through the COT report—you can pinpoint major trend changes that no other analysis method will detect.
| 
