How COT data decodes the markets

Sentiment data can give you a huge hint as to which way the market is heading, says John C Burford. Here, he looks at the gold, euro and Dow markets to explain how.

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OPEN INTEREST: 443,806
COMMITMENTS
186,921103,19525,713190,502274,648403,136403,55640,67040,250
CHANGES FROM 05/07/13 (CHANGE IN OPEN INTEREST: 5,875)
-2,4223,2751,8623,8312583,2715,3952,604480
PERCENT OF OPEN INTEREST FOR EACH CATEGORY OF TRADERS
42.123.35.842.961.990.890.99.29.1
NUMBER OF TRADERS IN EACH CATEGORY (TOTAL TRADERS: 319)
131102706159222208Row 8 - Cell 7 Row 8 - Cell 8
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OPEN INTEREST: 232,417
COMMITMENTS
52,84399,7646,696132,70065,854192,239172,31440,17860,103
CHANGES FROM05/07/13 (CHANGE IN OPEN INTEREST: 17,820)
32613,71480217,554-3,17618,68211,340-8626,480
PERCENT OF OPEN INTEREST FOR EACH CATEGORY OF TRADERS
22.742.92.957.128.382.774.117.325.9
NUMBER OF TRADERS IN EACH CATEGORY (TOTAL TRADERS: 171)
297328414187125Row 8 - Cell 7 Row 8 - Cell 8
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OPEN INTEREST: 119,758
COMMITMENTS
45,1399,53039555,52189,468101,05599,39318,70320,365
CHANGES FROM05/07/13 (CHANGE IN OPEN INTEREST: -602)
-2,385-359372503-2,292-1,510-2,2799081,677
PERCENT OF OPEN INTEREST FOR EACH CATEGORY OF TRADERS
37.78.00.346.474.784.483.015.617.0
NUMBER OF TRADERS IN EACH CATEGORY (TOTAL TRADERS: 110)
3614438317449Row 8 - Cell 7 Row 8 - Cell 8

John is is a British-born lapsed PhD physicist, who previously worked for Nasa on the Mars exploration team. He is a former commodity trading advisor with the US Commodities Futures Trading Commission, and worked in a boutique futures house in California in the 1980s.

 

He was a partner in one of the first futures newsletter advisory services, based in Washington DC, specialising in pork bellies and currencies. John is primarily a chart-reading trader, having cut his trading teeth in the days before PCs.

 

As well as his work in the financial world, he has launched, run and sold several 'real' businesses producing 'real' products.