Financial Markets Weekly Overview For December 18 – 24

 | Dec 17, 2017 05:03AM ET


We make up a weekly medium-term trade list based on CFTC reports and technical analysis.

The overview provides a description of the technical condition of the market on the most popular financial instruments, as well as information on the large speculators’ actions according to the last COT reports and the previous period.

If you want to use CFTC reports in your trading practice, you should understand that for an objective assessment of the situation it’s not enough to know the data of the last report. The dynamic is more important, in other words, comparing the statistics of large speculators’ actions in the current period with the previous one, so we mention both values.

E-Mini S&P 500 (ESH18)

The trend is bullish, another correction came to an end last week and the impulse wave develops. Long positions will remain relevant until the market is above the nearest support level on the Daily timeframe, the lows of December 5-7.

COT net position indicator reversed, large speculators began to sell actively and hedgers began to buy. Professionals’ opinion doesn’t correspond to the Daily trend direction and it makes sense to reduce the position size when an entry point appears in the trend direction.