What COT represents
Commitments of Traders data offers a periodic look at certain futures market positions. The data describes reported positions for a reporting period, not current intraday activity.
Look at changes and history
A single large number means less without context. Historical ranges, trend direction and differences between participant groups help explain whether positioning is ordinary or stretched.
Understand reporting delay
Weekly publication introduces a lag. A significant price or policy event may occur after the report cut-off, so COT should not be confused with a real-time feed.
Use multiple confirmations
A developing positioning theme may be interesting when fundamental expectations, price structure and intermarket context support the same story. Disagreement between the pillars can also be informative.
Document the limitations
Changes in contract specifications, mapping and data sources can affect comparisons. Well-maintained historical databases should be versioned and checked for consistency.