Hello Big Boyz! The pros are working, and they are moving out of old positions while the manage to keep price at lows/highs. This is crystal clear on EURUSD. While we have no COT Signal this week, there’s some interesting considerations to be made about USD. Let’s check it, but before we start don’t forget to share the article on your social media and follow me on Twitter @leohermoso
MAJORS CHANGE
EURUSD – TOP IS IN PLACE
Non-commercials are back again in take profit mode, and while history is a good teacher is up to us to be good learners. We will need a very catastrophic scenario to push EURUSD up.
- Why I am saying this!?
- Net Positions extremes;
- open Interest extremes;
- adding shorts;
- closing longs;
- decreasing open interest.
TRADING PLAN
We are already carrying two positions, but patience will be required because FX is extremely quiet and October is not a month with a high volatility historic. This chart will make clear to see the entry/exit levels, you can also check this on the dashboard.
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SOYBEANS – EXTREME POSITIONING
This looks something out of reality and looking at data looks to me that soybeans markets is extremely vulnerable to a selloff.
The fact that we have all-time high in non-commercials net positions is just one of the elements, we also must consider that the perception of value is extremely important. Brazil is the biggest soybeans’ producer in the world. It’s the first time Brazilian farmer has this kind of favorable combinations of factors.
- Devalued local currency
- Production records
In other words they have been never rich as they are now. Make no mistake everyone here is doing extremely nice life upgrades, and they are also with the finger on the trigger, to lock all this nice profits. My point is, with the first signal that things are going down, they will hit the sell button pretty hard.
TRADING PLAN
Our position is running and already in profit. Things will start to accelerate from here.
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Soybeans Daily
FX are in an extremely quiet period. Now it’s time to focus on better understanding of the dashboard functions. We have some running trades. Let’s focus on manage them, also a perfect time to exchange ideas withe team members and schedule a Zoom call with me if you want.
That’s it my friends, best regards
Leo Hermoso
