Hello Friends, last week I was sick and I could not prepare a Report for you. Make analysis in this kind of environment is hard because reason is far from markets. For example, look at the Big Movers of this week. You will see some changes above 1000%, friends this is not positioning or portfolio management this is purely panic. Play safe and let’s got to the markets.
Big Movers
USDJPY – POSSIBLE BOTTOM
USDJPY Triggering a cot index signal for bottom. The last we got a similar signal was on 13-08-2019 at 105 price region which was the last bottom we had. With corona giving a boost to USD we have all the elements to usdjpy look for a 115-116 print.
Trading Plan
We must have in mind that not only data is playing a major role in markets now, but mainly news and headlines. So you will need to pay attention to the news. I think things will get worse before improving. This is the position I am taking
COCOA – Uptrend Resumption
Strong commercial activity on COCOA. The added a massive chunk of longs indicating that this level of price is good for them and buying will resume. We can wait for the price to trend up from here.
Trading Plan
I am placing this long order and looking to add the marked zones. Even if demand decrease for Cocoa products, manufactures may still want to buy futures to lock future costs. This is a dangerous scenario as the price can get cheaper and seeing commercials stoping futures positions is not a nice thing to do. Respect the stop levels.
SUGAR – Uptrend Resumption
Sugar also seeing strong commercials activity and very interesting price levels. I am also expecting sugar to trend up from here.
Trading Plan
Exactly the same story as cocoa.
COT SIGNALS
That’s it my friends! I hope you can make money this week and stay safe. Take care of your family and stay HOME!
If you need help coding your strategy leave a comment here!
Best Regards
Leo Hermoso
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