The Commitments of Traders (COT) Report is a weekly publication by the Commodity Futures Trading Commission (CFTC) that shows the aggregate positions of different types of traders in US futures markets. It breaks down open interest into commercial, non-commercial, and non-reportable positions, providing insight into market sentiment and potential trend reversals. Forex and commodity traders study the COT report to identify when large speculators are excessively positioned on one side, which can signal an impending reversal.
Example
“The COT report showed non-commercial traders had built their largest net long position in gold futures in two years, suggesting crowded bullish positioning.”