This Week’s Economic Calendar
The previous week saw a dollar that broke out of the tight ranges it had been held in, while indexes continued to expand, creating new all-time highs week after week. This re-emphasizes that trading at all-time highs requires a focus on buy models until they prove ineffective. The US dollar is beginning to see the injection of institutional sponsorship into the market place, breaking the consolidation and giving the chance to now provide long-term projections. The new week brings forth important reports, among which the CPI news driver is significant, prompting adjustments in risk management practices and meticulousness in trades.
Please note that this is not financial advice.*
Monday:
This is a day without any significant news driver following an expansion on Friday on the US dollar confirmed across all other assets. It is also essential to consider that CPI is scheduled for the next day, which could lead to consolidations and high resistance liquidity runs. It’s crucial to prioritize the 10 am silver bullet or the 7-8 am silver bullet in the pre-market session, emphasizing being surgical in any executions during this day.
Tuesday:
This day brings the anticipation of CPI numbers. Following the news release, we anticipate a surge in market volatility, potentially offering favorable trading opportunities. While we typically avoid trading before high-impact news events, we can assess liquidity and inefficiencies afterward, which present themselves as a draw. Consider focusing on the 10-11 am silver bullet or the PM session for higher probability trades.
Wednesday:
The Red folder news driver at 1:01 pm will inject volatility into the markets. Consequently, the day is expected to offer optimal trading opportunities. Consider the 10-11 am Silver Bullet or the PM session for higher probability trades.
Thursday:
The release of the Red folder news, expected by 8:30 am, is poised to inject volatility into the markets shortly thereafter. Identifying the most probable higher time frame draw on liquidity post-news release, or alternatively awaiting the 10 am Silver Bullet, is likely to present optimal trading opportunities.
Friday:
Between 8:30 AM and 10 AM, several news drivers are scheduled. If your weekly profit objectives have not been met, it’s advisable to redirect your focus toward identifying the most probable higher timeframe draw on liquidity between the 10-11 am silver bullet and PM session.
Earnings Spotlight: Major Corporate Reports Unveiling This Week – Key Insights for Investors
Earnings Reports Impact: A gentle reminder to fellow traders, anticipate significant price movements surrounding earnings reports in large-cap companies. This period often presents strategic trading opportunities, capitalizing on heightened volatility for smoother trades.
The upcoming week revolves around earnings reports, with several large-cap institutions scheduled to release theirs. Specifically, ORACLE, DOLLAR TREE, and ADOBE are in focus this week, and traders should expect volatility and potential consolidation in the lead-up to these reports.
The Cot Report For The US Dollar
The previous week witnessed a breakout of consolidation with an aggressive displacement, signaling the injection of the long-awaited institutional sponsorship. On the other hand, analysis of the Commitments of Traders (COT) report, with a particular emphasis on commercials involved in hedging activities, indicates that commercials maintain a net long position. This data reaffirms that commercial entities, including institutions and hedgers, continue to hold more long positions than short positions in the market, with no significant changes observed. This discrepancy between the technicals and fundamentals arises.
Traders frequently utilize COT reports to glean insights into the positioning of various market participants, enabling them to make informed decisions regarding market trends and potential trading opportunities.
What does this signify for us as traders? The commercials we track in the Commitment of Traders report still maintain a net long position, despite order flow suggesting otherwise, coupled with bearish price action on the charts. This discrepancy serves as an early indication of smart money accumulation. We need to rely on order flow and price action until correlation returns between fundamentals and technicals. At this point, the COT data isn’t as useful until we see a correlation with the technicals.
Stay informed for sound decision-making, and always adhere to strict risk management protocols.
Until our next update, trade wisely.
Happy Trading!
Adora Trading Team
