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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?


To: HairBall who wrote (63677)12/4/2000 1:11:42 PM
From: John Madarasz  Read Replies (1) | Respond to of 99985
 
Regarding the Commitment of Traders...

LG, you and Kymar make good points, there is a lag in the reporting of the COT's allowing for a change before registered #'s post. The commercials can legally speculate in the futures markets using inside information.

*Also, it is not enough to know wether a certain group is short or long. Commercials are often short futures because many of them own physical commodities.

The modern approach to analyzing the commitment of traders (The COT Index) was developed by Curtis Arnold and popularized by Steven Briese, Publisher of the Bullish Review newsletter...

bullishreview.com

The actual COT Index seems to be the most widely recognized standard for measuring deviations of current commitments from their historical norms...

Best Regards, and good trading.

John M.

* from A.Elders "Trading For A Living" pps. 215-217