Financial markets weekly overview. Trade list for October 9 – 15

Торговый лист

We make up a weekly medium-term trade list based on CFTC reports and technical analysis.

The table below provides a description of the technical condition of the market on the most popular financial instruments, as well as information on the large speculators’ actions according to the last COT reports and the previous period.

If you want to use CFTC reports in your trading practice, you should understand that for an objective assessment of the situation it’s not enough to know the data of the last report. The dynamic is more important, in other words, comparing the statistics of large speculators’ actions in the current period with the previous one, so we publish both values in the table.

Note that the arrow direction gives us information about the large speculators’ actions (buying or selling) relative to the asset specified in the first column. For example, for CHF, the up arrow () indicates that COT net position indicator is rising, namely CHF is being bought, but not USDCHF.

Trade list for the current week

AssetComments29.
09
06.
10
**E-Mini
S&P500 (ESZ17)
The trend is bullish, the impulse wave develops. A pullback entry point on the Daily timeframe will appear after another correction formation, at the same time the price movement is very active that's why the reliable market entry is also possible on smaller timeframes. Large speculators are selling and the major players' opinion doesn't correspond to the market technical picture.
**Dollar Index (DXZ17)The trend is bullish, the impulse wave develops. A pullback entry point on the Daily timeframe will appear after the correction formation. COT net position indicator reversed, large speculators are buying abd the professionals' opinion corresponds to the market technical picture.
**EUR (E6Z17)The trend is bearish. A pullback entry point on the Daily timeframe will appear after the correction completion. COT net position indicator reversed, large speculators are buying and the professionals' opinion doesn't correspond to the market technical picture now, it makes sense to reduce the position size when an entry point appears in the trend direction.
**CHF (S6Z17)The trend is bullish (for USDCHF), the impulse wave develops. A pullback entry point on the Daily timeframe will appear after the correction formation on the Daily timeframe. Large speculators are selling franc and the professionals' opinion corresponds to the market technical picture.
**GBP (B6Z17)The Daily trend is bearish. A pullback selling opportunity will appear after the full-fledged correction completion on the Daily timeframe. The price movement is very active that's why the reliable market entry is also possible on smaller timeframes. Large speculators are actively buying and the major players' opinion doesn't correspond to the market technical picture, it makes sense to reduce the position size when an entry point appears in the trend direction.
**JPY (J6Z17)The trend is bullish (for USDJPY). A pullback entry point will appear after the correction formation on the Daily timeframe.
***WTI (CLX17)The trend is bullish, the correction wave develops on the Daily timeframe. A pullback buying opportunity will appear after its completion. Long positions will remain relevant until the market is above the support level on the Daily timeframe, the lows of September 8-11.
***CAD (D6Z17)The resistance level was broken on the Daily timeframe on Thursday, the trend is bullish (for USDCAD). A pullback entry point will appear after the correction formation on the Daily timeframe. Large speculators are buying the Canadian dollar and the professionals' opinion doesn't correspond to the market technical picture, it makes sense to reduce the position size when an entry point appears in the trend direction.
**XAU (GCZ17)The Daily trend is bearish, the market is in the correction. Large speculators are selling and the general direction of major players corresponds to the market technical picture. A pullback selling opportunity will appear after the correction completion. Short positions will remain relevant until the market is below the highs of September 25-26.
***XAG (SIZ17)The Daily trend is bearish, the market is in the correction. Large speculators are selling and the general direction of major players corresponds to the market technical picture. A pullback selling opportunity will appear after the correction completion. Short positions will remain relevant until the market is below the highs of September 25-26.
**AUD (A6Z17)The trend is bearish, the impulse wave develops. A pullback selling opportunity will appear after the correction formation on the Daily timeframe. Large speculators are selling and the general direction of major players corresponds to the market technical picture. Short positions will remain relevant until the market is below the highs of October 4-5.
**NZD (N6Z17)The support level was broken on the Daily timeframe on Tuesday, the trend is bearish, major players' opinion corresponds to the market technical picture. A pullback selling opportunity will appear after the correction formation on the Daily timeframe.
*RUB
(R6Z17)
The market remains in the flat on the Daily timeframe. Before the fact of the nearest support or resistance levels breakout new medium-term positions look unattractive. At the same time large speculators are buying RUB, the probability of breaking through the flat down on USDRUB price chart remains high.
The notation that determines the quality of possible trades during the new week are profit potential, the risk-reward ratio, the opinion of major market players, other factors:
****Excellent
***Good
**Ordinary
*Uninteresting (sideways trends, etc.)
The notation that determines the change in the opinion of large speculators, the direction of COT net position indicator in the reporting and prior periods are:
large speculators are buying the asset specified in the first column
large speculators are selling the asset specified in the first column
the green color of the arrows means that the Daily trend direction corresponds to the opinion of large speculators
the blue color of the arrows means that the Daily trend direction doesn’t correspond to the opinion of large speculators

Trade list in a graphical format is available here.

If you want to get more information on the pullback trading tactics and other aspects of trading in the market, watch the «Horizontal levels in trading» video course.

Conclusions

In the near future WTI Crude Oil, silver and USDCAD can become noteworthy depending on the depth of the market correction.

After breaking through the triangle, USDRUB may become interesting (the market is likely to break this converging formation down due to large speculators’ active purchases of roubles).

Other financial instruments in the trade list may be also interesting, but in these markets pullback signals on the Daily timeframe are likely to occur no earlier than a week.

More information on the topic:

Good luck in trading!

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