A brief comparative analysis of weekly COT (Commitments of Traders) reports on two Chicago stock exchanges: CME (Chicago Mercantile Exchange) and CBOE (Chicago Board Options Exchange)
Analysis of weekly COT reports on Bitcoin futures contracts allows you to compare changes in traders' sentiment in the market. Since CBOE trades contracts with a volume five times smaller than contracts on CME, CME traders are considered larger. Typically, their views are trusted by retailers. A quantitative analysis of the ratio of open positions is constantly carried out. A significant change in the difference in open interest between long and short positions may indicate a reversal of the existing trend. Comparing reports on two exchanges allows you to analyze the consistency in the vision of prices of large and medium-sized traders.
On the CME exchange (CHICAGO MERCANTILE EXCHANGE) for the period from 04/11/2018 to 04/17/2018, 22 large trader. Compared to last week, the number of purchased contracts increased by 228 and amounts to 1,305 contracts, and the number of sold contracts increased by 330 contracts and amounts to 1,645. Open interest on short positions exceeds long positions by 16%. And last week this difference was 22%. Therefore, we can say that the bearish mood, although dominant, has decreased compared to last week.
On the CBOE (Chicago Board Options Exchange), 55 large traders took part in trading over the same period. Compared to the previous report, the number of long positions decreased by 224 contracts and during the reporting period, short positions exceed long positions by 29.3%. Bearish sentiment also prevails on the SVOE exchange.
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