Take the Red Pill: The EURO COT Long Play RevealedTake the Red Pill: The EURO Long Play Revealed
"Let me tell you why you're here. You're here because you know something. What you know, you can't explain, but you feel it." – Morpheus
Most traders move blindly through the markets, buying and selling on impulse, on what they think they know. But for those who understand how to read deeper signals, patterns begin to emerge—patterns that separate the merely active from the truly informed. Right now, if you're willing to look, Commitment of Traders (COT) data is showing us something intriguing about the EURO. This is your red pill: a glimpse into how those in the know see beyond the chart.
The Setup: A Commercial Long Play
Behind the scenes, commercials—the ones who have true skin in the game—have loaded up on longs, reaching a 26-week extreme in positioning. Not only that, but they're holding their longest exposure in three years, a sign that those with the best intel in the market believe in a coming shift. Meanwhile, the "small specs," often driven by emotion rather than insight, have gone nearly max-short. Historically, this group isn't just wrong; they’re almost predictably wrong.
The result? A textbook setup. But if you’re looking to take advantage, know this: jumping in without discipline is how people get burned. We wait for a confirmed trend change on the daily timeframe. Nothing less. Because only the disciplined get to see beyond the shadows and reap the rewards.
The Undervaluation: Gold, Treasuries, and the EURO’s True Position
If you look at the EURO in comparison to gold and treasuries, something stands out—it’s undervalued. This doesn’t show up in headlines or make for easy soundbites, but for those who know how to look, it’s a flashing signal. And there’s a seasonal edge, too: the EURO’s tendency to rally through mid-December. It’s another puzzle piece that, when added up with positioning extremes and market sentiment, paints a picture that only a few will truly grasp.
Supplementary Signals: Layers of Confirmation
For those still seeking confirmation, additional indicators are lining up: %R, Stochastic, and even bullish momentum divergence are signaling alignment. But understand this—the market doesn’t reward the impatient. We wait, observe, and move only when the trend change is confirmed on the daily chart.
The Truth Beneath the Surface
This is no ordinary trade idea. It’s a blueprint to help you see the hidden dynamics that move the market. Those who look only at surface price action may be blindsided by the moves yet to come. But for those willing to see beyond—those ready to know what the COT data, the fundamentals, and the seasonal tendencies are saying—this is a rare opportunity.
Now, if you’re ready to see what the rest don’t, follow Tradius Trades. You’ll be one of the few with eyes open, equipped to move with purpose.
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> "I didn’t say it would be easy, Neo. I just said it would be the truth."
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Look at the futures market open post NFP Miss. A short look across major futures markets after we have an NFP Miss
EUR is setting for declineSome time ago we have talked about EUR COT reports. Swing traders should focus on taking sell signals. Commercials are short this market, while retailers are heavily buying. We saw almost the same in 2018 before a big decline in EUR. I believe the story repeats. However, we don’t have a good entry yet. I have a feeling price will make false breakup before the trend starts. But the market doesn’t have to follow my feelings )) Besides, the evaluation index shows EUR is overvalued. Short-term traders can continue to trade in the range with tight stop loss. But our main focus is on taking sell signals, like swing failure, etc. Many data will be released the coming week, including retail sales, Empire State, Philadelphia Fed, and June University of Michigan consumer sentiment reports scheduled along with the Federal Reserve’s Beige Book. Possibly it will be driving power to break out of the range. We have to monitor COVID cases in the USA and government response to it. At the moment it is one of the most important fundamental factors for the American dollar and it will have an impact on EUR.
EURUSD - (Short Premium) High IVR / Short Strangle TradeIn this video I introduce you to the benefits of market and strategy diversification. I then cover a short strangle trade that I am currently in.
I will begin posting more short premium options trades along with my current directional price action trades that I frequently post.