The positions below represent the institutional positions held as of September 18, 2018!
For this week’s report we must keep something very important in mind. This past week we had contract expirations and what that means is the futures contracts that the data is based on expired this week so institutional traders have to roll into new contracts, meaning they have to close out open positions and then open new contracts to replace them. So when looking at the data we will see big changes taking place with both long and short positions so we can’t make an assumption that these changes reflect their want to build and close out a position. To get a better idea of what is taking place here we must wait for next week’s report.
There are more advanced lessons on how the institutions use these contract expiration dates to reposition themselves within the markets but to understand this you must first have a good grasp on how the banks trade using both their long and short positions, which is the skill that current students are trying to accumulate by reading the reports each and very weekend! ;)
One big thing to take note of this week is how the $eurusd and $dxy weekly charts removed their weekly obstacles. This is big and has shifted momentum in the markets, but will the momentum continue in the upward direction on the $eurusd and downwards on the $dxy? Considering weekly charts are in consolidation anything can take place in the coming weeks.
I am currently positioned with theme trades on both the $gbpusd and $eurusd taking advantage of the upward momentum on both. The $gbpusd theme longs put the portfolio up 10% this week and I have left the positions opened until momentum decides to shift back down. Since consolidation on the charts means anything can take place, I am waiting for the charts to tell me when price wants to shift back down.
An institutional long signal has been triggered on one of the $gbp pairs. I am only risking 1% of the portfolio on this long at this time, should price begin to shift upwards on the H4 chart, I’ll be looking for more long signals to add to my position.
It’s great to see the markets providing good opportunities again; I expect more should be presenting themselves as the weeks unfold.
Magic Trader