[TRADERguy]

Hi everybody,

Here is a tip for analyzing commitment of traders’ data. When you look at the data for commercials it is important to compare the recent figure to previous figures for the same currency/market. Commercials will almost always be net short because they are in the futures market to hedge a future position in which they will be long (that is have possession of) that currency. For example if the commercials are 60% short it wouldn’t tell you anything on its own. However, if they are 60% short when they are usually 80% short then it is bullish. Also, to make things more confusing, some of the companies that are labeled commercials because they have told the exchange/their broker that they only hedge, actually engage in speculation as well as hedging.