If you want to learn how to fish, the very first rule is to go where there’s fish. Sounds simple enough right? You can be the best fishermen on the planet and if you’re not casting into water where there’s fish, well I think you get the picture. So let’s locate them keepers and reel them in. The best way to find where the so called Smart Money is, go to the cftc.gov website. This is where you’ll find the (Commitment of Traders Report) released every Friday afternoon. My favorite football coach of all time was Woody Hayes, and he would always say “you win with people”. The people we’re referring to here, are the ones controlling massive amounts of trading capital moving in and out of the markets everyday, providing liquidity needed to make trading possible. Examples would be Asset and Money Managers of large hedge funds and 401k’s, Producers, Merchants & Processors, Farmers and Large retail traders. Below is an example of what I’m talking about in the Soybeans market.
