Eurex BUND Futures - MIXED SIGNALS

The MKT has produced a big positive signal and is flirting with a resumption of the BULL TREND, however it currently remains vulnerable to further corrective action with all trading below the 12872 Inflection Pivot. This is the hurdle the market must overcome to confirm yesterday's positive signal.

On the SELL side accept FADE strategies on the initial test against 12872 or at the previous session high only. Repeated tests are expected to give way to higher prices as above the previous session high the corrective structure will be broken confirming the positive signal. Avoid REVERSAL strategies as any violations of resistance are positive. SELL BREAKOUT strategies below 12823 and 12776 are valid but aggressive. The MKT has produced a positive signal so if it does not follow through a negative turn could have some potential. Either way have a defined exit strategy as any negative action will be counter trend.

On the BUY side accept REVERSAL signals off all major inflection levels expecting the underlying positive tone to resume course. FADE strategies off 12776 should work on the initial test. The MKT has generated a positive signal and if it is going to follow through it should just go. Work any BUY BREAKOUT strategies above 12872 as any positive shift in momentum has the potential to be the start of the next leg higher.

Note: the MKT has produced a major technical buy signal and is poised for a resumption of the BULL TREND. Look for excuses to get long above 12872 and be weary of a difficult trade below this price point..

JS

Learn more about JS Services Strategy Based Trading approach using CLEARBOX automated strategies! For more information please contact me at info@jsservices.com. You can also visit http://www.jsservices.com/ and sign up for a Complimentary FREE Trial.

SP500 Futures - CORRECTIVE

The MKT has produced a positive signal and is flirting with a resumption of the BULL TREND.

Key off the 1120 Inflection Pivot for an indication of the session tone. Below here the Index will continue to search for a corrective low point with 1088.50 the expected bottom or any further corrective action. A rise above 1120 and the underlying positive momentum with be back in launch mode.

On the SELL side accept FADE strategies against 1120 on the initial test of major resistance below or at the previous session high only. Repeated tests are expected to give way to higher prices as above the previous session high the corrective structure will be broken confirming the positive signal. Avoid REVERSAL strategies as any violations of resistance are positive. SELL BREAKOUT strategies below the 1103.75 support pivot are valid but aggressive. The MKT has produced a positive signal so if it does not follow through a negative turn could have some potential down to 1096 and 1088.50. Either way have a defined exit strategy as any negative action will be counter trend.

On the BUY side accept REVERSAL signals off all major inflection levels atr 1103.75, 1096 and 1088.50 expecting the underlying positive tone to resume course. FADE strategies should work on the initial test. The MKT has generated a positive signal and if it is going to follow through it should just go. Work any BUY BREAKOUT strategies above 1120 as any positive shift in momentum has the potential to be the start of the next leg higher.

Note: the MKT has produced a technical buy signal but remains in a corrective trade. Look for excuses to get long on qualified signals but respect the corrective posture.

JS

Learn more about JS Services Strategy Based Trading approach using CLEARBOX automated strategies! For more information please contact me at info@jsservices.com. You can also visit http://www.jsservices.com/ and sign up for a Complimentary FREE Trial.

EUREX BUND - MIXED SIGNALS

The MKT is holding firm but remains in a corrective posture down to the 12345 Inflection Pivot. This is the low point for any setback if the underlying tone is going to remain positive.

On the SELL side accept FADE signals against the 12419 resistance pivot only on the 2nd or 3rd confirmation. REVERSAL strategies should only be done off 12419 or the previous session high point at 12431 and will immediately work if they are going to. Keep position and risk management tight on these trades. SELL BREAKOUT strategies below 12345 will work better as a signal for a FADE of Directional resistance at 12390 with profit targets at the 12361 support area. The underlying tone is positive and negative follow through is not expected.

On the BUY side accept REVERSAL signals off all major inflection levels, expecting the underlying positive momentum to resume. FADE strategies off ther 12361 and 12345 support Inflection Pivot will work better with confirmation as the MKT is in a corrective state and will be probing lower looking for soft spots. Work any BUY BREAKOUT strategies above the 12419 resistance pivot as any positive shift in momentum has the potential to be the start of the next leg higher.

Note: The MKT is in a corrective position and sharp negative sell offs are not expected to follow through. If after a break the MKT stabilizes and starts to build structure, look for buy opportunities and work it until that structure is broken.

JS

Join our "LIVE" TRADE ROOM and learn JS Services Strategy Based Trading approach using CLEARBOX automated strategies! For more information please contact me at info@jsservices.com. You can also visit http://www.jsservices.com/ and sign up for a Complimentary FREE Trial.

RUSSELL 2000 Index mini - CORRECTIVE SIGNAL

** BULL TREND CORRECTION **

The MKT is holding firm but remains in a corrective posture and is technically "on the fence". Key off the 630.10 Inflection Pivot for an indication of the session tone.

On the SELL side accept FADE signals only on the 2nd or 3rd confirmation against 630.10. REVERSAL strategies should only be done off 630.10 or the previous session high point [633.40] and will immediately work if they are going to. Keep position and risk management tight on these trades. SELL BREAKOUT strategies below 618.70 will work better as a signal for a FADE against the 624.40 Directional resistance with profit targets at 618.70. The underlying tone is positive and negative follow through is not expected.

On the BUY side accept REVERSAL signals off all major inflection levels [618.70, 613.00 and 607.30], expecting the underlying positive momentum to resume. FADE strategies will work better with confirmation as the MKT is in a corrective state and will be probing lower looking for soft spots. Work any BUY BREAKOUT strategies above 630.10 as any positive shift in momentum has the potential to be the start of the next leg higher.

Note: The MKT is in a corrective position and sharp negative sell offs are not expected to follow through. If after a break the MKT stabilizes and starts to build structure, look for buy opportunities and work it until that structure is broken.

JS

This post supports the Strategy Based Trading, which is a methodology that focuses on the applied strategy verses a specific market. The approach looks to align strategies with markets whose current technical behavior matches the strategies criteria. Please review the following CME sponsored tutorial for a complete overview of this approach.

STRATEGY BASED TRADING Review http://progressive.powerstream.net/008/00102/edu/interactive/js_services/strategy_based_trading/index.html

For more information please contact me at info@jsservices.com. You can also visit http://www.jsservices.com/.The Inflection Pivot levels are available as a chart overlay on the following platforms; Ninja trader, Strategy Runner and eSignal. Sign up for a Complimentary FREE Trial.

Recap:Nov 23, 2009 - SP500, DOW Futures, FTSE100

As a practical application recap of yesterday's BULL TREND CORRECTION signals I will go over the performance for each market presented.


SP500 Dec'09 1095.50 Inflection Pivot


The Index started teh week in a negative corrective signal which remained in force below the 1095.50 Inflection Pivot. During Sunday evening's session the level was tested and then violated early Monday. The violation negated the negative signal and confirmed a resumption of the underlying positive trend providing a nice buy opportunity. This is a perfect example of a REVERSAL opportunity in the BULL TREND CORRECTION technical signal.

DOW Futures Dec'09 10349 Inflection Pivot
The DOW provided a similar opportunuty breaking out above it's Inflection Pivot in the early Monday hours. This is why I like this signal state so much. It is dynamic and provides a great opportunity to get back on the underlying trend and favorable prices. Here even coming in at the regular session the violation of the 10412 JS Services initial target level provided a nice pop up to the 2nd target.

FTSE100 Dec'09 5313 Inflection Pivot

The FTSE100 was the best opportunity as its REVERSAL buy signal happened during the regular session and was combined with an Upside Pivot [UP] breakout signal attaining the 2nd Upside Target [UT2] in the session.


This is the Strategy Based Trading approach at work. Our expectations where for the MKT to key off the session Inflection Pivot to confirm or deny the negative technical corrective signal. Once the Inflection Pivot was breached market sentiment shifted back to the underlying posiitve trend producing a fresh buy opportunity.

The charts presented show JS Services Price Map overlay. Sign up for a Complimentary FREE Trial


Good Trading

JS

STRATEGY BASED TRADING Review http://progressive.powerstream.net/008/00102/edu/interactive/js_services/strategy_based_trading/index.html

BULL TREND CORRECTION Signals for : SP500, DOW Futures, FTSE 100

The Strategy Based Trading approach is the focus on the applied strategy and aligining our strategy criteria with the market's underlying technical state.


Today we are going to focus on MKTs that have produced a negative signal against an underlying positive trend or a BULL TREND CORRECTION signal state. A dynamic technical state with opportunity on both sides of the market.


The question, is this negative signal going to follow through or is this just a 1 day event and the underlying positive momentum is going to resume. The price point that answers this question and determines this "sentiment shift" is the session Inflection Pivot. This is the price point that defines the technical state from being a negative "corrective"posture below that price point to a positive BULL TREND position above that price point.


Trading below the session Inflection Pivot is negative keeping the CORRECTIVE SELL signal in play and the MKT vulnerable. Trading above this price point is an indication that the negative vulnerability of the MKT is reduced and there is a better chance that the underlying positive momentum is going to resume.


For November 23, 2009 the following MKTs are in a BULL TREND CORRECTIVE state and the Inflection Pivot that determines the contiuation of the sell signal or a reversion to the underlying positive trend.


EQUITY FUTURES [DEC09]


SP500 1095.50

Dow Futures 10349

FTSE100 5313


Draw a line on your intra-day chart at these levels. Look for opporunty in the direction of the price bias. Executing at or near these price points will provide the best risk / reward. SELL FADE and BUY BREAKOUT should be considered as entry strategies at these levels.


Good Trading.


JS


Strategy Based Trading is a methodology that focuses on the applied strategy verses a specific market and looks to align strategies with markets whose current technical behavior matches the strategies criteria.STRATEGY BASED TRADING Review http://progressive.powerstream.net/008/00102/edu/interactive/js_services/strategy_based_trading/index.html


For more information please contact me at info@jsservices.com. You can also visit http://www.jsservices.com/.The Inflection Pivot levels are available as a chart overlay on the following platforms; Ninja trader, Strategy Runner and eSignal. Sign up for a Complimentary FREE Trial

BULL TREND CORRECTION: SP500, ND100, DOW30, AUDUSD, CORN, GOLD

Today we are going to focus on MKTs that have produced a negative signal against an underlying positive trend or a BULL TREND CORRECTION signal state.

The question, is this negative signal going to follow through or is this just a 1 day event and the underlying positive momentum is going to resume. The price point that answers this question and determines this "sentiment shift" is the session Inflection Pivot. This is the price point that defines the technical state from being a negative "corrective"posture below that price point to a positive BULL TREND position above that price point.

For OCTOBER 26, 2009 all markets that have produced a BULL TREND CORRECTIVE signal are CURRENTLY above their Inflection Pivot. In this situation the Inflection Pivot is basically saying "prove it to me". If the market is bad it should break below the Inflection Pivot and not look back. A held trade above this price keeps the market in a firm digestive trade.

Today I have added an additional price level, a resistance pivot or Upside Pivot. This is the price point where the positive underlying trend should be expected to resume. Each level should be drawn on an intra-day chart for a visual presentation of opportunity. Trading above the Inflection Pivot keeps the market firm however a resumption of the BULL TREND is not confirmed until the market is above the Upside Pivot. This application is available for automatic updates in following platforms: Strategy Runner, Ninja Trader and eSignal. Click here for a Complimentary FREE Trial.

EQUITY FUTURES [DEC09]

SP500 1056.75 Inflection Pivot : Upside pivot 1082.50

Nasdaq100 1716.50 Inflection Pivot : Upside Pivot 1779.50

Dow Futures 9927 Inflection Pivot : Upside Pivot 10029

FOREX

AUDUSD 9201 Inflection Pivot : Upside Pivot 9277

Commodity [Dec' 09]

CORN 389-0 Inflection Pivot : Upside Pivot 408-0

Metals [Dec'09]

GOLD 1043.7 Inflection Pivot : Upside Pivot 1069

Draw a line on your intra-day chart at these levels. Look for opportunity in the direction of the Inflection Pivot price bias. Executing at or near these price points will provide the best risk / reward. SELL BREAKOUT below the Inflection Pivot as well as BUY REVERSAL on a false breakdown signals are opportunity. SELL FADE against the Upside Pivot expecting the negative signal to continue or BUY BREAKOUT entry strategies above the Upside Pivot should be considered expecting the BULL TREND to resume.

Good Trading.

JS

Strategy Based Trading is a methodology that focuses on the applied strategy verses a specific market and looks to align strategies with markets whose current technical behavior matches the strategies criteria.

STRATEGY BASED TRADING Review http://progressive.powerstream.net/008/00102/edu/interactive/js_services/strategy_based_trading/index.html

For more information please contact me at info@jsservices.com. You can also visit http://www.jsservices.com/.

BULL TREND CORRECTION SIGNAL for SP, DOW, MidCap400, 5yr, 30yr, BOBL, BUND, DAX, EuroStoxx and FTSE

The Strategy Based Trading approach is the focus on the applied strategy over a specific market. Define a strategy that you are comfortable with and apply that strategy in MKTs whose technical state is in line with your strategy criteria.

Today we are going to focus on MKTs that have produced a negative signal against an underlying positive trend or a BULL TREND CORRECTION signal state. The question, is this negative signal going to follow through or is this just a 1 day event and the underlying positive momentum is going to resume. The price point that answers this question and determines this "sentiment shift" is the session Inflection Pivot. This is the price point that defines the technical state from being a negative "corrective"posture below that price point to a positive BULL TREND position above that price point.

Trading below the session Inflection Pivot or what JS Services calls its REVERSAL LEVEL or R Level is negative keeping the CORRECTIVE SELL signal in play and the MKT vulnerable. Trading above this price point is an indication that the negative vulnerability of the MKT is reduced and there is a better chance that the underlying positive momentum is going to resume.

For OCTOBER 22, 2009 below are the MKTs that are in a BULL TREND CORRECTIVE state and the Inflection Pivot that determines the contiuation of the sell signal or a reversion to the underlying positive trend.

EQUITY FUTURES [DEC09]

SP500 1083.75
Dow Fut 9927
MidCap400 701.90
DAX 5785
EuroStoxx 2880
FTSE100 5230


INTEREST RATE FUTURES [DEC09]

US 30YR T-BOND 120-25
US 5YR T-NOTE 106-057
BUND 12183
BOBL 11528

Draw a line on your intra-day chart at these levels. Look for opporunty in the direction of the price bias. Executing at or near these price points will provide the best risk / reward. SELL FADE and BUY BREAKOUT should be considered as entry strategies at these levels.

Good Trading.

JS

Strategy Based Trading is a methodology that focuses on the applied strategy verses a specific market and looks to align strategies with markets whose current technical behavior matches the strategies criteria.

STRATEGY BASED TRADING Review http://progressive.powerstream.net/008/00102/edu/interactive/js_services/strategy_based_trading/index.html

For more information please contact me at info@jsservices.com. You can also visit http://www.jsservices.com/.The Inflection Pivot levels are available as a chart overlay on the following platforms; Ninja trader, Strategy Runner and eSignal. Sign up for a Complimentary FREE Tri

Strategy Based Trading - BULL TREND CORRECTION

The Strategy Based Trading approach is the focus on the applied strategy over a specific market. Define a strategy that you are comfortable with and apply that strategy in MKTs whose technical state is in line with your strategy criteria.


Today we are going to focus on MKTs that have produced a negative signal against an underlying positive trend or a BULL TREND CORRECTION signal state. The question, is this negative signal going to follow through or is this just a 1 day event and the underlying positive momentum is going to resume. The price point that answers this question and determines this "sentiment shift" is the session Inflection Pivot. This is the price point that defines the technical state from being a negative "corrective"posture below that price point to a positive BULL TREND position above that price point.

Trading below the session Inflection Pivot or what JS Services calls its REVERSAL LEVEL or R Level is negative keeping the CORRECTIVE SELL signal in play and the MKT vulnerable. Trading above this price point is an indication that the negative vulnerability of the MKT is reduced and there is a better chance that the underlying positive momentum is going to resume.

Starting the week of OCT 19, 2009 the Canadian Dolllar and 2yr T-Note futures and the FOREX AUDUSD major cross rate are in the BULL TREND CORRECTION technical state.

Canadian Dollar Dec'09 contract

Expectation today are that Friday's negative signal will weigh on the MKT below the 9663 Inflection Pivot, pressing support at 9606. If the currency is going to stabilize it will do so above here. A held failure and the MKT is vulnerable to further corrective action down to 9492 and 9406 on any negative follow thourhg.

A held trade above 9663 puts the negative signal in question and the contract in a neutral digestive position. Only above 9720 is the underlying BULL TREND back in gear targeting 9834 on any positive turn of events. 10062 is the upper extreme.

US 2yr T-Note Dec'09 contract

The 2YR T-NOTE is flirting with a underlying sentiment shift with all trading below the 108-180 Inflection Pivot. A held failure from 108-152 confirms Friday's "corrective" signal targeting 108-105 on any downside follow through. If the trade is going to remain "normal" the MKT will stabilize above here. A break under 108-105 and the contract is vulnerable to further losses down to 108-005.

A rise above 108-180 takes the edge off for more of a digestive trade up to 108-207. Be patient. This is the high point for any lackluster trade. A violation here and the underlying BULL TREND will trying to re-establish itself targeting 108-255. 109.035 is the upper extreme.



FOREX AUDUSD



The AUDUSD cross produced a negative signal that will remain in play with all trading below the 9182 Inflection Pivot. A break under 9129 is needed to confirm fresh losses targeting 9023 on any downside follow through. Be patient if the MKT is going to stabilize it will here. If not the potential to transition down to 8811 is real.

A held trade above 9182 puts the contract back into a digestive trade. Only above 9235 does the underlying positive momentum try to re-assert itself for a run at 9341. 9420 is the current upper extreme.




As you read through the different outlooks one thing is apparent. They are all basically the same. That is the point of the Strategy Based Trading Approach.

STRATEGY BASED TRADING Review http://progressive.powerstream.net/008/00102/edu/interactive/js_services/strategy_based_trading/index.html

By developing strategies to capitalize in this technical signal state you not only improve your chances of success but also develop a comfort with the market action during this state and improve your confidence in executing your strategy in that state.

For more information and to receive a complimentary trial of my service which defines these signal states please send inquires to info@jsservices.com or click here for a Complimentary FREE Trial.

JS Services is here to support your profit objectives.

It's our job to help you make more money.

Stop analyzing, start executing and see the difference in your bottom line.

Hope this helps.

Good trading.

JS

EUROFX - DRAMA DAY

The Dec'09 EUROFX posted a negative technical signal against an underlying positive trend. 14644 is the Inflection Pivot that confirms or denies any short term sentiment shift. Typically if a MKT cannot confirm a negative technical signal it can act as a spring board for a fresh advance.

Key off the 14736-14644 Critical Range for a signal to the MKTs next move. A breach of 14736 negates the BULL TREND CORRECTIVE negative signal sparking fresh interest targeting the 14897-14877 resistance band on any positive turn of events.

A break under 14644 is needed to give the CORRECTIVE signal some teeth targeting 14547 on any downside follow through. Be patient. If the MKT is going to stabilize it will above here. If not the weakness can extend down to 14414 before it does.

JS

STRATEGY BASED TRADING Review http://progressive.powerstream.net/008/00102/edu/interactive/js_services/strategy_based_trading/index.html

For more information please contact me at info@jsservices.com. You can also visit http://www.jsservices.com/.The Inflection Pivot levels are available as a chart overlay on the following platforms; Ninja trader, Strategy Runner and eSignal. Sign up for a Complimentary FREE Trial.

STRATEGY BASED TRADING - BULL TREND CORRECTION

Continuing with the BULL TREND CORRECTION focus the Currencies have provided us opportunity for this signal state. Each MKT presented has produced a negative signal against an underlying positive trend. Is this signal going to follow through to the downside or is this just an opportunity to re-enter a positively trending MKT.

* Please read the previous posts for the week on BULL TREND CORRECTION as well as the webvidoe tutorial links.

To answer this question we look at the MKTs behavioral state and the specific price point or inflection pivot where sentiment for the signal is confirmed or denied. Trading at this price point is optimal however aligning your signal acceptance to the sentiment bias in the BULL TREND CORRECTIVE state will enhance your performance.

For today, September 25 2009 - The following MKTs are in a BULL TREND CORRECTIVE state:

EU = EUROFX Dec'09 – 14681 Inflection Pivot

DA = Australian Dollar – 8534 Inflection Pivot

AUDJPY = Aussie / Yen – 7905 Inflection Pivot

EUROFX Z'09 - The MKT produced a negative signal against an underlying positiver trend and will remain in a BULL TREND CORRECTION technical state below the 14681 Inflection Pivot. If the negative action is going to continue the currency will struggle to maintain a trade above 14681. A failure from 14609 confirm fresh selling targeting 14517 on any negative follow through.

A held rise above 14681 removes the negative threat sparking a rally up to 14767. Stay nimble. This move does have potential to be the beginnings of a new leg higher however the Friday trade will most likely keep the trade digestive.

Australian$ z'09 - The MKT is expected to shrug off yesterday's negative signal with all trading above the 8534 Inflection Pivot. Keep a buy break bias above here expecting the positive momentum to remain in force. Only under 8534 does sentiment shift.


AUDJPY - The cross is trying to find its footing but will continue to struggle with all trading below the 7906 Inflection Pivot. This is the high point for any buying today if the negative corrective signal is going to remain in force. A rise above 7905 revives the aggressive buyers with 7958 the initial target. Work any sustain positive structure with expectations for a run at the recent move highs at 8006.



JS



Strategy Based Trading is a methodology that focuses on the applied strategy verses a specific market and looks to align strategies with markets whose current technical behavior matches the strategies criteria.


Please review the following CME sponsored tutorial for a complete overview of this approach.STRATEGY BASED TRADING Review http://progressive.powerstream.net/008/00102/edu/interactive/js_services/strategy_based_trading/index.html


For more information please contact me at info@jsservices.com. You can also visit http://www.jsservices.com/.The Inflection Pivot levels are available as a chart overlay on the following platforms; Ninja trader, Strategy Runner and eSignal. Sign up for a Complimentary FREE Trial.

Strategy Based Trading - Bull Trend Correction Signal

Continuing with the BULL TREND CORRECTION focus the ETF sector indices have provided us with the most opportunity for this signal state. Each MKT presented has produced a negative signal against an underlying positive trend. Is this signal going to follow through to the downside or is this just an opportunity to re-enter a positively trending MKT. * Please read the previous posts for the week on BULL TREND CORRECTION as well as the webvidoe tutorial links.

To answer this question we look at the MKTs behavioral state and the specific price point or inflection pivot where sentiment for the signal is confirmed or denied. Trading at this price point is optimal however aligning your signal acceptance to the sentiment bias in the BULL TREND CORRECTIVE state will enhance your performance.


For today, September 24 2009 - The following MKTs are in a BULL TREND CORRECTIVE state:

ND = ND100 Index Dec'09 – 1706.75 Inflection Pivot
QQQQ = Power shares QQQ Trust – 42.01 Inflection Pivot
SPY = SP500 Index Dep Rcpt – 106.75 Inflection Pivot
SOX = PHLX Semiconductor Sector – 328.90 Inflection Pivot
BTK = Biotechnology Index – 960.33 Inflection Pivot
OSX = PHLX Oil Services Sector – 195.95 Inflection Pivot
XAL = AMEX Airline Index – 28.42 Inflection Pivot
AUDJPY = FOREX – 7962 Inflection Pivot

FUTURE
ND100 Z'09 – The Index produced a negative signal against a positive trend, which will remain in force above the 1706.75 Inflection Pivot. Above here any weakness is an opportunity to buy. A failure from 1706.75 is needed to confirm the negative signal and sentiment shift.

ETF
QQQQ - The Index produced a negative signal against a positive trend, which will remain in force above the 42.01 Inflection Pivot. Above here any weakness is an opportunity to buy. A failure from 42.01 is needed to confirm the negative signal and sentiment shift.

ETF
SOX - The Semiconductor Index posted a new move high close but settling at the low end of the range produced a negative corrective signal. Above the 328.90 Inflection Pivot it is all noise with the uptrend firmly in command. A break below 328.90 is needed to shift sentiment out of the aggressive buy posture into a neutral or transition posture.

ETF
BTK - The Biotechnology sector produced a negative signal against a positive trend and will remain vulnerable to further losses with all trading below the 960.33 Inflection Pivot. Only above here does the underlying positive momentum engage.

ETF
SPY - The SPYders posted a negative BULL TREND CORRECTION signal and will remain vulnerable to further losses below the 106.75 Inflection Pivot. A rise above 106.75 removes the threat with expectations for a firm neutral trade.

ETF
OSX – The Oil Services Sector Index posted a negative BULL TREND CORRECTION signal and will remain vulnerable to further losses below the 195.95 Inflection Pivot. A rise above 195.95 is needed to put the BULL TREND back in play.

ETF
XAL - The Airline Sector Index produced a negative signal against a positive trend, which will remain in force above the 28.42 Inflection Pivot. Above here any weakness is an opportunity to buy. A failure from 28.42 is needed to confirm the negative signal and sentiment shift.

FOREX
AUDJPY – The Aussie Yen is flirting with a sentiment shift below the 7962 Inflection Pivot. A held trade below here will keep the contract on edge and the BULL TREND CORRECTIVE signal in play. Only above 7962 is the signal negated and the currency set for a digestive trade.

The MKTs presented are "technically" in play, in a BULL TREND CORRECTIVE state, providing opportunity on both sides of the MKT. For MKTs above their Inflection Pivot [ND100, QQQQ, SOX, XAL] look for positive entry opportunities especially a REVERSAL entry strategy off support.

For MKTs below their Inflection Pivot [BTK, SPY, OSX, AUDJPY] all buy signals should use reduced size or not be accepted until the MKT is back above its Inflection Pivot. Once above the Inflection Pivot an aggressive buy position can be resumed with the expectation of the resumption of the positive trend. As long as the MKT is below the Inflection Pivot sell signals can be accepted, however it is a counter trend move so smaller size should be used.

JS

Strategy Based Trading is a methodology that focuses on the applied strategy verses a specific market and looks to align strategies with markets whose current technical behavior matches the strategies criteria. Please review the following CME sponsored tutorial for a complete overview of this approach.STRATEGY BASED TRADING Review http://progressive.powerstream.net/008/00102/edu/interactive/js_services/strategy_based_trading/index.html

For more information please contact me at info@jsservices.com. You can also visit http://www.jsservices.com/.The Inflection Pivot levels are available as a chart overlay on the following platforms; Ninja trader, Strategy Runner and eSignal. Sign up for a Complimentary FREE Trial.

Strategy Based Trading - BULL TREND CORRECTION

Today and the rest of the week I'm going to continue to focus on MKTs that are in a BULL TREND CORRECTION technical state. A MKT in this position has an underlying positive trend but has produced a negative signal against that trend. This is a dynamic technical state with opportunity on both sides of the trade equation.

By developing a strategy to trade this state and apply only in MKTs that are producing negative signals against a positive trend or a BULL TREND CORRECTION, you not only improve your chances of a successful trade but also have a more satisfying trade experience as your strategy is align with your expectation.

*

* Practical Application review for Sep 21,2009 BULL TREND CORRECTION MKTs click here http://www.jsservices.com/recaps/JSSReviewUTC92109.wmv

*
For today, September 22 2009 - The following MKTs are in a BULL TREND CORRECTIVE state:
*
SP = SP500 Index Dec'09 - 1069.25 Inflection Pivot
EMD = Mid Cap400 Index Dec'09 - 694.80 Inflection Pivot
EX = EUROSTOXX Dec'09 - 2870.0 Inflection Pivot
EU = EUROFX Dec'09 - 14695 Inflection Pivot
CD = Canadian$ Dec'09 - 9311 Inflection Pivot
ED1 = EURODOLLAR Dec'09 - 9951.5 Inflection Pivot
CC = Cocoa Z'09 - 3119 Inflection Pivot

SP500 Z'09 - At the time of this blog the Index is trading below its 1069.25 Inflection Pivot. The negative corrective sell signal will dominate MKT behavior below here. Below 1069.25 the 500 is vulnerable to further corrective action. A rise above 1069.25 and the underlying BULL TREND will try to make up for lost time and a strong advance should be expected.

EUROSTOXX Z'09 - The MKT settled just below the 2870 Inflection Pivot. Expect a dynamic trade around this price point. If the BULL TREND CORRECTION is going to continue lower the Index will not do much if any trading above 2870. If so the BULL TREND will try to re-establish itself. A held trade under 2870 and yesterday's lows are in jeopardy.

Mid Cap400 z'09 - The Mid Cap 400 Z'09 contract is currently above its 694.80 Inflection Pivot. If the BULL TREND is going to remain in effect the index will build a base above this price point for a fresh advance. A held break under 694.80 is needed to confirm the negative signal and further losses.

EUROFX Z'09 - The currency had a negative corrective signal but remains in a solid state above the 14695 Inflection Pivot. This is the low point for any weakness today if the underlying positive trend is going to remain unaltered. A break under this price point and yesterday's lows are in jeopardy.

Canadian$ Z'09 - The Canadian Dollar is also trading above its Inflection Pivot at 9311 after a negative corrective signal. Keep a positive outlook above this price point expecting a resurgence of the positive momentum. Only under 9311 does sentiment align with the negative technical signal for a new move lower.

EURODOLLAR Z'09 - The front month EURODOLLAR Z'09 is on its 9951.50 Inflection Pivot. Its "Hold or Fold" for this MKT. Continue the corrective trade or return to the BULL TREND.

COCOA Z'09 -The MKT remains vulnerable to further corrective action below the 3119 Inflection Pivot. Keep all signal acceptance in line expecting further losses below here. Only above this price point is the signal negated and the buyers back for another charge.

The MKTs presented are "technically" in play, in a BULL TREND CORRECTIVE state, providing opportunity of both sides of the MKT. In this trend position it is more likely that the MKT is going to move than not. Typical scenarios are either 1. Downside follow through on the negative signal, 2. Positive reversal and resumption of the underlying Bull Trend or 3. Sideways neutral digest. By using the Inflection Pivot as a sentiment guide, [Bull Trend resumption above, Negative Correction Below] you can optimize your strategy performance and capitalize on this technical signal state.

JS


Strategy Based Trading is a methodology that focuses on the applied strategy verses a specific market and looks to align strategies with markets whose current technical behavior matches the strategies criteria. Please review the following CME sponsored tutorial for a complete overview of this approach.

STRATEGY BASED TRADING Review
http://progressive.powerstream.net/008/00102/edu/interactive/js_services/strategy_based_trading/index.html


For more information please contact me at info@jsservices.com. You can also visit http://www.jsservices.com/.The Inflection Pivot levels are available as a chart overlay on the following platforms; Ninja trader, Strategy Runner and eSignal. Sign up for a Complimentary FREE Trial.