The first things to look for in the non-commercials net change indicator are group themes. Are there similar movements in the COT data in several markets within a group? This week the answer would be no. Against the background of geopolitical concerns and a US holiday last Monday, movements in COT data have been mostly muted. Still, there was some movement again in soybeans, as well as meal and oil. And copper continues to coil but non-commercials backed off their threat to cross to the net long side of the market.
This RadarScreen capture shows the net change in the net non-commercial position, expressed as a percent of the total non-commercial open interest, in the Commitments of Traders (COT) data released Friday, September 6.
This indicator and more information about COT reports are available in the Analysis Concepts paper titled "Commitments of Traders: Breaking Down the Open Interest." As detailed in the paper, the intention is to follow the money flow of large speculators: money managers, hedge funds, etc.
You can read more of this blog here. Written by Stanley Dash, VP, Applied Technical Analysis, TradeStation. Follow TradeStation