The CoT Report provides inside information about purchases and sales of futures contracts. The largest players in each market are required to disclose their positions to the Commodity Futures Trading Commission (CFTC) . The resulting CoT Report shows the net positions of traders, which are separated into three groups:
It is common knowledge that Large Speculators (“Smart Money”) are holding a significant informational edge over other traders as far as fundamental supply and demand statistics are concerned. This is a fact that has also been confirmed by empirical literature (Investor Sentiment and Return Predictability in Agricultural Futures Markets”, Journal of Futures Markets, 2001). “Smart Money” is always trend-leading, whereas “Dumb Money” is trend-lagging.
By measuring the investment behavior of “Smart & Dumb Money” our CoT indicators will help our subscribers to identify major high reward market regimes and major shifts before typical price indicators do.
Track the positioning of Smart Money, measure extreme positions of Smart Money and identify establishing trends or major shifts in a timely manner.
The following examples demonstrate the remarkable accuracy of WallStreetCourier’s CoT Index in identifying strong trends in futures markets. By measuring the investment behavior of “Smart & Dumb Money,” our CoT indicators provide a powerful tool for traders to stay ahead of the curve and make informed decisions. Get a glimpse into the world of the “Smart Money” and see how the CoT Index can help you succeed in the futures markets.
This infographic is a visual guide to using the Commitment of Traders report to track the positioning of smart money within futures markets. It explains the WSC COT Index, a percentage value that indicates the relative positioning of smart money over the last three years. A value of 100% means that smart money has its highest position within the last three years, while 0% means it has its lowest position within the same period. Values above 70% are considered positive, while values below 30% are negative.
Click on Image to Enlarge or Download as PDF
The WallStreetCourier CoT-Index is one of the most effective ways to uncover extreme positions of Smart Money and, hence, identify optimal entry and exit points for various future markets.
Definitely the most exclusive feature within the CoT section of our member’s area is the CoT Regime Score Board. This cutting-edge tool gives you a unique and unparalleled insight into the trading behavior of Large Speculators (aka Smart Money).
The score board is showcasing key components used to identify current market regimes of futures markets based on CoT-Smart Money positions, along with a proprietary momentum score to assess trend direction and strength.
Market Regimes are determined by analyzing net Smart Money Positions relative to their maximum positions within three different timeframes (CoT Index). CoT Index values on a scale of 0 to 100% represent the positivity of signals within the respective timeframe. The scoreboard utilizes stars for each market’s smart money positions (up to 4 stars maximum) to enhance readability.
By combining short- to mid-term and mid-term to long-term Smart Money Positions, the specific market regime is determined. This information is valuable for both short-term traders and buy-and-hold investors, helping them make informed decisions based on market conditions.
A proven way to identify major shifts in financial markets is simply to watch closely what the so-called “Smart Money” is doing. Stay ahead of the game with WallStreetCourier’s expert analysis and tools. Our in-depth analysis of the CoT Report for 45 futures markets is giving you a comprehensive understanding of what Smart Money is doing.
Follow us on Twitter or bookmark this site to stay up-to-date and never miss an update!
You are currently viewing a placeholder content from X. To access the actual content, click the button below. Please note that doing so will share data with third-party providers.
More Information