Most of you probably never have ever heard about CFTC Commitments of Traders. However it's is one important report released every end of week disclaiming the position of every trader on markets COMMERCIALS / SWAP DEALERS, NON COMERCIALS / PRODUCERS , ASSET MANAGERS / MANAGED MONEY AND INVESTORS/ OTHER REPORTABLE.
Let's start with a short description about each one of these PLAYERS :
- COMMERCIALS / SWAP DEALERS - These are the BIG BOYS... the deep pocket, Banks and large corporations big Hedge funds... honestly they have the best real picture of the market of course it's not showed or teach for public THEY ARE THE REAL SMART MONEY!
- NON COMMERCIAL / PRODUCERS - These players are basically all Hedge funds out there and producers of commodities... they have a short term view of the market but not the long term also they use high leverage to increase their positions so they are the smart money short term... but they are limited.
- ASSET MANAGERS / MANAGED MONEY - These are the smart mind of market not the big player but the big connection players not always they are right usually they have networking with big boys and use this "knowledge" and influence to trade to MILLIONAIRES CLIENTS. YES THESE GUYS TRADE FOR RICH PEOPLE WHO DOESN'T CARE ABOUT THE MARKET ONLY WANT PROFIT in return they charge small fees that can made 1 million bucks a year! :D
- SMALL INVESTORS/ OTHER REPORTABLE - Finally here ARE US... the suckers hauuhauhau The small investor who comes everyday into market in order to make a small buck to even pay our small bills or even pay for a small travel to maybe the center of city to buy a hot dog hauuahuha!
Now let's take a look at Report -
In this case I took the Brazilian real as the asset to be analized you can look at top that there are THE NAME OF ASSET/ COMMODITIES, THE PLACE IT'S TRADED - THE DATE. nothing special here even a child can understand it ehehe
Now the second and most important part of report the Position of players ( this sample only show non commercial and commercials) So you can look that here you have the picture of what the big and small boys are doing in the market.... as simple as that when there're more long positions they are buying more and if there are more shorting they are selling.
What to do now? As you are an small investor with FEW RESOURCE you must try to always follow the COMMERCIALS / SWAP DEALERS. WHY? Because they have the deep pocket that YOU DON'T also they carry positions looking at fundamentals and have information that you wont probably never get access.
Obs: It's doesnt mean If they are long you go long NOOOOOOO. this report only show you what THEY DID a week ago however they cant close all positions by once otherwise they would tank the market but you will be able to see how they are changing their positions week by week and then you will know if you are or not at right side of market.
This report is simple and short... all the other reports can be found here :
- http://www.cftc.gov/MarketReports/CommitmentsofTraders/index.htm
They are public free but It's not good that all people know ABOUT IT :D hehehe
So by now you have a classe about trading maybe one of the most important heheh....go ahead take a vast majority of reports and try your sklill to see what the SMART MONEY IS DOING AT MOMENT rather than stay in front of SHIT TV! :D
See you guys
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