🔻 Today I want to start with the Dollar index (DXY). As you can observe from the Commitments of Traders Friday report hedge funds increased their long position by 17%. The last one such a strong rise of buys was a year ago before all this rally. Moreover, if you open the COT index, you will find that funds and hedgers reached extreme divergence, in this case, I prefer to short. But now small traders are not as bullish as they have to be on the real extremums, that's why I think that the rally is not over and we will see a continuation in this asset next week.
🔻 Also, I see not a good signal in Nasdaq (NQ). Funds and small traders significantly increased their longs with OI rise, it is a fuel for a trend continuation. And also when I see delta increase and buy HFTs’ against the trend it means that this trend will be sure to continue.
🔻 Due to expiration hedge funds closed all their long position in Euro (6E). It looks strange, as we are on week support now, so why do they close longs? Most of all hedgers like to buy from major support levels, but they always break through in the meantime. So I expect to sell continuation in the euro.
🔻 Gold (GC) will also continue to fall and will break down its local uptrend line. The rejection that we saw from the option payouts level will continue and the price will probably break even technical supports on a daily chart.
🔻 The previous week I told about Wheat, which almost achieved its target, and Soybeans, which really came to options payouts support. The only asset from grains that haven’t fallen yet is Corn (ZC). On Friday it closed below the commercial level and below HFTs’. After the significant divergence of volume delta and quantitive delta on June 16. The current magnet zone is 765, and on days we can map important strike at the 700 price level.
🔻 And the last one is Swiss frank (6S), we saw big ASK HFT Volumes on top and huge bid acumulative delta at the same time. It is good sell signal for me. But the price needs to fix below 1.0340 price level.
As a result:
Dollar index (DXY) buy
Nasdaq (NQ) sell
Euro (6E) sell
Gold (GC) sell
Corn (ZC) sell
Swiss frank (6S) sell
Wish you a profitable upcoming week!
📹 See more information in video
(Previously published in TVT School)
Sincerely, Taras Sviatun
Team Trading Volume Terminal