{Addressing a global crowd of analysts and entrepreneurs, AI innovator Joseph Plazo delivered a riveting talk on the one market report almost nobody studies properly. 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.
“The markets talk. The COT is its confession,” he began, revealing 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.
Why Institutions Treat COT Like Gold
He broke down the three tribes that define market structure:
Producers and large corporates, who move billions to manage real-world exposure
Large Speculators, who drive macro trends
Small Speculators, whose footprints often signal tops or bottoms
What matters is not who holds positions, but who changes them dramatically.
He shared how Plazo Sullivan integrates COT data into an AI system that detects:
Macro build-ups
Cycle rotation
Crowded trade unwinds
“In markets,” he noted, “data is noise until someone gives it voice.” That voice is structure, here positioning, and timing—three pillars he hammered repeatedly throughout the TED stage.
The Simple Framework That Levels the Field
Plazo presented a three-step 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.”
The Future of Trading
Plazo concluded 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 predicted a future where retail traders who ignore positioning will continue to be liquidity 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.