This Week’s Economic Calendar
In the Middle East, recent escalating tensions, coupled with threats of nuclear war, have been reflected in the marketplace, with rapid repricing and volatile swings surrounding the news releases. This is advantageous for traders, as such events are typically utilized by market makers to swiftly reprice the market towards targets, resulting in open ranges and low resistance runs to liquidity, as observed in the US dollar and confirmed across other assets, including the indexes. Although the ranges remain open and significant swings are anticipated in the future, emphasis should consistently be placed on adequate risk management moving forward.
Please note that this is not financial advice.*
Monday:
Today, there are no significant news drivers, following Friday’s expansion on the indexes towards anticipated targets. Given that it’s a Monday, exercising patience and managing expectations is crucial. The recommendation is to wait for the 9:30 opening and then concentrate on identifying the most probable higher timeframe draw on liquidity around the 10-11 am ‘silver bullet’.
Tuesday:
Red and medium folder drivers are scheduled for 9:45 am and 10 am, respectively, expected to inject volatility into the markets. Consequently, the day is anticipated to present optimal trading opportunities. It will be ideal for traders to focus on the 10-11 am ‘Silver Bullet’ and the PM session for higher probability trades.
Wednesday:
The release of the Medium 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.
Thursday:
With red folder news expected to flood the market throughout the day, starting as early as 8:30 am, traders should anticipate volatility injections that could facilitate smoother trades. Traders are encouraged to prioritize either the 7-8 am Silver bullet, the 10 am Silver bullet, or the PM Session.
Friday:
Red folder news drivers are introduced at both 8:30 am and 10 AM, coinciding with the Silver Bullet hour. If your weekly profit objectives haven’t been met, redirect your focus to identifying the most probable higher time frame draw on liquidity during the 10 to 11 AM silver bullet window .
Earnings Spotlight: Major Corporate Reports Unveiling This Week – Key Insights for Investors
Earnings Reports Impact: A gentle reminder to fellow traders to 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. Traders should expect volatility and potential consolidation ahead of these reports.
The Cot Report For The US Dollar
An analysis of the Commitments of Traders (COT) report, with a focus on commercials engaged in hedging activities, indicates that commercials maintain a net long position. The data released on Friday reaffirms this trend once more, consistent with previous weeks, showing that commercial entities, including institutions and hedgers, continue to hold more long than short positions in the market. This suggests an anticipation of higher prices in the longer term, a trend observable as the weeks progress
What does this signify for us as traders? The US dollar remains bullish as confirmed by fundamental factors going into the new week. This sentiment is expected to persist until price action on the charts and order flow indicate otherwise. Therefore, our stance remains bullish!
Stay informed for sound decision-making, and always adhere to strict risk management protocols.
Until our next update, trade wiseley
Happy Trading!
Adora Trading Team
