{Before an audience of curious investors, AI innovator Joseph Plazo delivered a riveting talk on the data set that quietly moves global markets. He argued that the COT, when decoded correctly, is nothing less than a market x-ray—a transparent look into the intentions of the world’s most powerful traders.
“If you want to predict price, follow positioning,” he began, unpacking how Plazo Sullivan Roche Capital uses the report as a core element of its institutional models.
Most retail traders, he noted, chase indicators—they react. Professionals study posture—they anticipate. The COT is posture.
The Power Behind the Report
He detailed the three tribes that define market structure:
Hedgers, who move billions to manage real-world exposure
Institutions, who drive macro trends
Leveraged novices, whose footprints often signal tops or bottoms
The magic is in the deltas.
He shared how Plazo Sullivan integrates COT data into an AI system that detects:
Impending reversals
Institutional distribution
Crowded trade unwinds
“In markets,” he noted, “data is noise until someone gives it voice.” That voice is structure, positioning, and timing—three pillars he hammered repeatedly throughout the TED stage.
The Simple Framework That Levels the Field
He shared a simple but powerful method traders can use immediately:
Identify extremes
When commercials hit record longs or shorts, something big is brewing.
Watch the shift
Sharp changes often precede major breakouts.
Align bias with smart money
When funds load long into weakness, retail panic is often the entry signal.
“The COT won’t tell you when to enter,” he said, “but it will reveal where the ocean is flowing. Your job is simply to surf the tide.”
Why COT Matters More in an AI-Driven Market
He closed with a glimpse into the next evolution of analysis at Plazo Sullivan Roche Capital:
AI that reads the Commitment of Traders Report not as one snapshot, but as a story—a shifting orchestration of institutional intent.
He forewarned a future where more info retail traders who ignore positioning will continue to be fuel for institutional algorithms, but those who embrace structural tools like the COT will be able to compete with unprecedented clarity.
The applause was thunderous.
A simple report had just been transformed into a strategic weapon—thanks to Joseph Plazo’s mastery of markets and human behavior.