Now what do we do about other instruments that do not have the Commitments of Traders Report released like stocks, ETFs, etc? We can create our very own proxy! With this proxy you can see what the "commercials and speculators" are doing for stocks, ETFs and CFDs. I got to know about COT proxy when I attended Larry Williams trading course in Australia many years ago. Immediately saw the power of using it for trading any instruments without the real COT report.
Now the question comes, how can we be certain the COT Proxy works exactly or closely as the real COT Report? To test this we have to compare it from the real COT to the COT Proxy in a side by side comparison. The move must be in unison. Let's see it in the next post!
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