Want to cut all the market noise? Just follow what the commercials do.
Ellipsiz - SGX
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Ellipsiz - COT Proxy
One of the counters that has the commercials still on the long side, and since June 2011 at that... so one of the stronger counters to brave all this selling...
For those of you not familiar with the Commitments of Traders Report, COT Proxy, you might want to check out this website Larry Williams Picture Perfect Trading for a brief introduction. I attended one of his Picture Perfect courses a few years ago and this was one of the things he touched on. The COT report is released by the US Commodity Futures Trading Commission where they show the open positions of traders for futures contracts. For stocks and other instruments there is no such COT report released so what the proxy has done is to simulate/gauge the open positions of these traders.
Cotton No. 2 Futures - Commitment of Traders Report Take a look at the disaggregated Cotton No. 2 chart. Usually the commercials aka the producers and swap dealers are moving in tandem. Both will either go long or short at roughly the same time. But for this commodity we can see that they move in the opposite direction. See the producers (blue line) and swap dealers (red line). Why is this so? Please take note also that prior to 4th September 2007, Cotton No. 2 was traded on the New York Board of Trade before switching to ICE Futures US.
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