Business News
Investing in Commodities, Tip 22: Consider the COT Report
By
Commodity HQ
Jun 20, 2012 10:00 am
The Commitment of Trader report is one of the most valuable resources that commodity investors can use. Here's why.
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The Commitment of Trader report, or COT for short, is one of the most valuable resources that commodity investors can keep up with on a regular basis. The COT report is published on a weekly basis, every Friday afternoon, by the Commodity Futures Trading Commission and it shows where large speculators, commercial, and small traders have placed their bets in terms of open interest information. This report allows you to gauge how different market participants are positioned across currencies, stock indexes, as well as commodities, offering a high level overview of the general sentiment in the market.
The only limitation of the COT report is the fact that it's based on open interest information from the previous Tuesday, which inherently makes it three days late. Nonetheless, the information offered can still be used to gauge the overall sentiment in the market, offering valuable insights to investors and financial advisors alike.
Bottom Line: The COT report can offer valuable insights for your trades.
This article is part of the series "Tips for Investing in Commodities." See also:
Tip 1: Futures Do Not Equal Spot
Tip 2: Commodities and Dividends Can Align
Tip 3: Watch Your Tax Rates
Tip 4: China Can Make or Break You
Tip 5: Low Inventories Can Lead to Backwardation
Tip 6: Diversification Is Not a Given
Tip 7: Rolling Front Month Futures Is a Recipe for Disaster
Tip 8: More Than Just Energy and Gold
Tip 9: Watch Out for That K-1!
Tip 10: Consider Expenses Always
Tip 11: Commodity Exposure Through Stocks: Pros & Cons
Tip 12: Know What You're Getting Into
Tip 13: Consider Physical Exposure
Tip 14: Commodity ETFs: Structure Matters
Tip 15: Bigger Does Not Mean Better
Tip 16: Commodity ETFs Get a Bad Rap
Tip 17: Beware the Dollar's Impact
Tip 18: Not All Commodities Are Created Equal
Tip 19: Know Your Geography
Tip 20: Be Mindful of Your Timing
Tip 21: Platinum and Palladium Are the Other Precious Metals
Tip 23: Remember That You Also Have Options
Tip 24: NAGS Vs. UNG -- Different Tools for Different Objectives
Tip 25: Free Resources Can Make Your Life Easier
Follow us on Twitter @CommodityHQ!
Editor's note: This article by Jared Cummans was originally published on Commodity HQ.
The only limitation of the COT report is the fact that it's based on open interest information from the previous Tuesday, which inherently makes it three days late. Nonetheless, the information offered can still be used to gauge the overall sentiment in the market, offering valuable insights to investors and financial advisors alike.
Bottom Line: The COT report can offer valuable insights for your trades.
This article is part of the series "Tips for Investing in Commodities." See also:
Tip 1: Futures Do Not Equal Spot
Tip 2: Commodities and Dividends Can Align
Tip 3: Watch Your Tax Rates
Tip 4: China Can Make or Break You
Tip 5: Low Inventories Can Lead to Backwardation
Tip 6: Diversification Is Not a Given
Tip 7: Rolling Front Month Futures Is a Recipe for Disaster
Tip 8: More Than Just Energy and Gold
Tip 9: Watch Out for That K-1!
Tip 10: Consider Expenses Always
Tip 11: Commodity Exposure Through Stocks: Pros & Cons
Tip 12: Know What You're Getting Into
Tip 13: Consider Physical Exposure
Tip 14: Commodity ETFs: Structure Matters
Tip 15: Bigger Does Not Mean Better
Tip 16: Commodity ETFs Get a Bad Rap
Tip 17: Beware the Dollar's Impact
Tip 18: Not All Commodities Are Created Equal
Tip 19: Know Your Geography
Tip 20: Be Mindful of Your Timing
Tip 21: Platinum and Palladium Are the Other Precious Metals
Tip 23: Remember That You Also Have Options
Tip 24: NAGS Vs. UNG -- Different Tools for Different Objectives
Tip 25: Free Resources Can Make Your Life Easier
Follow us on Twitter @CommodityHQ!
Editor's note: This article by Jared Cummans was originally published on Commodity HQ.
No positions in stocks mentioned.
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