Today is Sunday, June 16th and we are summing up the trading week results.
Open positions at the current moment are:
Dow Jones: long position – 4 contracts.
Let’s consider last week’s deal in details.
Dow Jones (open position)
SetUp for Dow Jones was published in the weekly trading plan W23. This is the trend SetUp of Commercials.
Looking at COT index we can notice where they bought the last time (highlighted in green. It is seen that they are buying on an upward trend. It is also interesting that the Commercials net position were in the positive zone (highlighted in blue). Last time similar situation was in March 2016. After that there was a very significant upward movement.
This entry of deal is a buy on a rollback. Therefore, the degree of risk per trade has been reduced. We have bought 4 lots. Stop has been set at low on Thursday.
We plan to hold the position. The only thing that confuses in the current trade is the seasonal trend and the date 06/18/19. Dow Jones follows seasonality now, and 06/18/19 begins the downward movement in seasonality. Monday and Tuesday are two days when the price can rise, then the downward movement will follow.
What decision can we make? If there is the good upward impulse on Monday, then we will move the deal to breakeven. If there is the weak movement, then we should get out of this trade. Moreover, if there is reversal candle, such as on Monday of the 24th week, then this will be a 100% reversal and the price will go down.
But at the moment, if we look at other indicators, for example momentum, primo trend, accumulation, we can see that they are very bullish. Indicators are constantly rewriting the new high. We still believe that on Monday there will be the good upward momentum.
This is all about the results of the trading week.
Today we will plan for the upcoming week and consider new setups.
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