Fundamental | Macro
COT Report (Commitment of Traders)
"The CFTC's COT report reveals the positioning of major institutional players in US futures markets, offering a unique view of 'smart money' sentiment."
In-Depth Definition
The Commitment of Traders (COT) is a weekly report published each Friday by the CFTC (Commodity Futures Trading Commission), based on Tuesday's data. It details the net positions (long vs short) of three trader categories in futures markets: Commercials (hedgers, actual producers/consumers of the commodity), Non-Commercials (large speculators: hedge funds, CTAs), and Non-Reportables (small speculators). Non-Commercials are considered 'smart money': their extreme positions (record net long or short) often coincide with market reversals. The COT is particularly used in forex, commodities (gold, oil, wheat), and bonds.
StarQuant Insight
StarQuant automatically analyzes the COT weekly, calculates normalized sentiment indicators (percentage of bulls over 52 weeks), and alerts when historical extreme positions are reached, signaling potential reversals.
Pro Tip
Use the COT as a contrarian indicator at extremes. When Non-Commercials are positioned at record levels in one direction, the market is often near a reversal. Combined with technical analysis, it's a very powerful tool.