I hope you all are doing great. Markets still full of opportunities, let’s see some of them!
CADCHF – Uptrend Resumption
Big activity by commercials buying all this move down CADCHF did. Commercials are counter-trend traders and they have closed all their shorts and are already in positive territory. This triggered a bottom signal and the resumption of the previous uptrend. I am taking a bullish view from here.
Trading PLAN
Let’s use the same approach from previous trades. We wait for the breakout and buy the pullback!
USDMXN – Downtrend Resumption
This is a very similar story to CADCHF. Commercials closed most of their longs and it’s very possible we see markets retracing from here. We will be sure about this next week looking into the commercial’s net position again.
For now, the expected move is down and we see they adding back to long positions.
Trading plan
The risk-reward at these levels of prices and with the above info I told you, is super attractive. I opened a short position. You can check in the screenshot the stop and take-profit. This trade is also interesting because we get paid to hold the position, as the interest rate differential is on our side.
SILVER – Uptrend Resumption
Commercials are now holding a very small short position. This is super supportive for our view, from where they should start to increase their net short positions, while funds add to longs. We are at the right moment and also in a small consolidation. Prices breaking up from here is the confirmation we need.
You will see that this is also very similar to what I posted in the above calls. Commercials have the power to mark bottoms and tops as their money can tend to infinite. They can always offset the cash position with physical deliveries and they can always sell/buy the next month/year contract.
TRADING PLAN
More of the same. We wait for the breakout and buy the pullback!
All COT SIGNALS
That’s it my friends! I hope this can add value to you in some way. If you have any kind of doubts or questions please comment here, I am looking forward to replying to you.
“Hey Leo wait, I want to see your analysis for more pairs”
Very well my friend, join me in my chatroom.
Have a great weekend you all!
My best regards,
Leo Hermoso
