A quick explanation for these charts: The blue line is Copper divided by the second instrument (10-Year, Gold, SP500, etc). If the blue line is rising, this means Copper is gaining against the other instrument while a falling blue line means Copper is losing ground.
The COT part of these charts are the Speculators in green and the Commercials in red. We use the strength index calculation (large trader levels over the past three years) to compare among the futures instruments. These levels are the result of the strength index of Copper minus the strength index of the other instrument. The extreme levels are the black lines on the charts and show the extreme levels of the Specs and Commercials. Extreme levels are at +60 (bullish) and -60 (bearish).
*COT Report: The COT data, released weekly to the public each Friday, is updated through the most recent Tuesday (data is 3 days old) and shows a quick view of how large speculators or non-commercials (for-profit traders) as well as the commercial traders (hedgers & traders for business purposes) were positioned in the futures markets.
The CFTC categorizes trader positions according to commercial hedgers (traders who use futures contracts for hedging as part of the business), non-commercials (large traders who speculate to realize trading profits) and nonreportable traders (usually small traders/speculators). Find CFTC criteria here: (http://www.cftc.gov/MarketReports/CommitmentsofTraders/ExplanatoryNotes/index.htm).
By CountingPips Research