EURO-BOBL

Today's MARKET STATE for EURO-BOBL: **BEAR TREND**

- Technically the MKT is vulnerable to the offer. On the SELL side accept all BREAKOUT, FADE and REVERSAL signals. The MKT is on edge and any negative signal, especially below the previous session high, is an opportunity. Anticipate a price "zone" around a major resistance point to FADE. Have a plan and be ready. If your stop gets hit and the MKT does not immediately follow through, consider re-entering, even doubling up if there is structure to define low risk.
- On the BUY side REVERSAL strategies can be executed off of major support levels but preferably after an emotional sell off. This is an aggressive strategy and any profits should be realized at the previous support failure points. Avoid DP FADE BUYS even with confirmation, as this is more likely a plateau for a BREAKOUT SELL strategy. UP BREAKOUT strategies are not recommended but do have a better chance of succeeding than a DP FADE.

Today's PRICE MAP Performance for BOBL

 

Wrap Up
- Today was a unique day in the EURO-BOBL Futures market.  With an MC Value of -5, JS Services proprietary technical indicator is indicating that the market is in a BEAR TREND.  However, there was evidence in the RSI that made a case for a corrective rally so by placing the R Level at the DIR, the analyst is saying if the BEAR TREND is going to continue, it should just go.  Just after midnight the market advanced above the minor level at 124.80.  It then sold off sharply, only to encounter SUPPORT at the R Level.  This successful test of the R Level should have signaled traders to get long the market from the R Level with tight position management, as the underlying BEAR TREND must be respected.  As it played out, the market rallied throughout the day, had a brief pullback which found support at the UP around 4:30 A.M. and then continues up to the UT1, where profits should have been realized.  Today served as another example of the importance of the R Level when trading with JS Services Strategy Based Trading Approach.

DJI FUTURES INDEX

Today's MARKET STATE for DJI FUTURE INDEX: **BULL TREND**

- The MKT has a firm tone and as long as the integrity of the previous session low remains intact, look for excuses to get long. On the SELL side UP FADE strategies are valid but profit targets and risk management should be tight.  REVERSAL strategies should be applied only at the UP and +c after an exhaustive signal. Use DP BREAKOUT strategies as a signal to FADE a positive reaction against the DIR. Only until the MKT breaks the positive structure are sell signals an opportunity.
- On the BUY side BREAKOUT, FADE and REVERSAL are recommended as the MKT is bid and all buy signals are valid opportunity. If stopped out at or near the low tic of a reaction and the MKT is not following through to the downside, look to re-enter using the recent squeeze low as a stop. If the MKT breaks structure, de-leverage and be more selective as the likelihood of a sideways trade is high.
Today's PRICE MAP Performance for YM

Wrap Up
- In a relatively calm day for the markets today, the DJI FUTURES INDEX respected the analyst placement of the R Level which could have translated to profits for you, as a trader.  The R Level is the "Breaking Point" for the positive sentiment.  After respecting the R around 3:30 the market makes another attempt to breakdown from this level around 5 A.M.  The market digests around this level, and then resumes the underlying positive trend.  This overnight pullback position us as traders to benefit and execute a BUY DP FADE around 5:30 A.M.  The market maintained positive structure throughout the day, making higher highs and higher lows.  The market broke through the DIR and eventually made it past our minor level at 13502 before running out of steam.  A good strategy would have been to place a stop at 13502 after this level had been penetrated, which would have minimized your profit giveback on the trade.

JS Services Strategy Based Trading

Defining Market State, Structure, and Strategy is essential to becoming a successful trader.  See how JS Services can help you reach your maximum potential!

The following web video provides the foundation to our Strategy Based Trading approach.

http://progressive.powerstream.net/008/00102/edu/interactive/js_services/strategy_based_trading/index.html

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If you have any questions, feel free to email us at: info@jsservices.com.

Good Trading!

5-YEAR TREASURY NOTES

Today's MARKET STATE for 5-YEAR TREASURY NOTES: **BULL TREND**

- The MKT has a firm tone and as long as the integrity of the previous session low remains intact, look for excuses to get long. On the SELL side UP FADE strategies are valid but profit targets and risk management should be tight.  REVERSAL strategies should be applied only at the UP and +c after an exhaustive signal. Use DP BREAKOUT strategies as a signal to FADE a positive reaction against the DIR. Only until the MKT breaks the positive structure are sell signals an opportunity.
- On the BUY side BREAKOUT, FADE and REVERSAL are recommended as the MKT is bid and all buy signals are valid opportunity. If stopped out at or near the low tic of a reaction and the MKT is not following through to the downside, look to re-enter using the recent squeeze low as a stop. If the MKT breaks structure, de-leverage and be more selective as the likelihood of a sideways trade is high.
Today's PRICE MAP Performance for FV

Wrap Up
- Big day for traders in the 5-YEAR TREASURY NOTES market as our analyst correctly positioned our traders for the day.  With an MC Value of +4 and a BULL TREND Market State, our expectation is for a move higher.  However, by placing the R Level at the DIR, the analyst is saying "if this market is really in a bull trend, prove it!"  The market broke below the DIR in the early morning session, held support at the minor level 124'097 and then rallied back up to the DIR, where it failed twice to surpass this level.  This action negated the positive bias, and served as a prime opportunity to execute a SELL DIR BREAKOUT strategy.  Our profit target for this trade is the DT1, which was achieved right around 6 A.M.  Looking at our market commentary (STRATEGY), we are instructed to use a DP BREAKOUT as a signal to execute a SELL DIR FADE after a corrective rally.  Well, we had the DP BREAKOUT just before 5 A.M. and the corrective rally back up to the DIR stalled out around 124'112, giving us a PERFECT opportunity to SELL the DIR FADE after a DP BREAKOUT signal.  Wasting no time at all, the market sold off down to our profit target, the UT1, just after 9 A.M.  Today proved to be very profitable day for those trading with JS Services!

S&P 500 INDEX

Today's MARKET STATE for S&P 500 INDEX: **BULL TREND**

- The MKT has a firm tone and as long as the integrity of the previous session low remains intact, look for excuses to get long. On the SELL side UP FADE strategies are valid but profit targets and risk management should be tight.  REVERSAL strategies should be applied only at the UP and +c after an exhaustive signal. Use DP BREAKOUT strategies as a signal to FADE a positive reaction against the DIR. Only until the MKT breaks the positive structure are sell signals an opportunity.
- On the BUY side BREAKOUT, FADE and REVERSAL are recommended as the MKT is bid and all buy signals are valid opportunity. If stopped out at or near the low tic of a reaction and the MKT is not following through to the downside, look to re-enter using the recent squeeze low as a stop. If the MKT breaks structure, de-leverage and be more selective as the likelihood of a sideways trade is high.

Today's PRICE MAP Performance for SP

Wrap Up
- Today in the S&P 500 INDEX market, JS Services helped its traders position themselves on the correct side of the market to capture profits from the emotional rally that came from the Fed announcement.  An MC value of +7 and a BULL TREND Market State provided the framework for today's trading...BUY!  After a dull digestive period to start the day, the market began to rally just after 11:30 A.M.  From here, our market commentary suggests a BUY UP BREAKOUT trade with the expectation that the market will produce a move higher.  The market rallied violently up to the UT1, took a breath, and then continued up to our profit target, the UT2, just after 12:30.  Although we recommend realizing profits at the 2nd major price map level from the order entry point, a trader who'd held on to their position would have been rewarded handsomely, as the market traded all the way up to, and through, our 2nd minor level at 1455.00.  Trading with the JS Services Strategy Based Trading approach would have positioned you on the correct side of the market and led to SERIOUS profits today.

EURO-BOBL

Today's MARKET STATE for EURO-BOBL: **NEUTRAL DIGESTION**

- Technically the MKT is "on the fence" with the potential to go in either direction or nowhere. Pick your points and have no expectations, as the likelihood of this MKT trading sideways is high.
- On the SELL side BREAKOUT, FADE and REVERSAL strategies are valid, however profit and position risk management should be aggressive and anticipated. The pivotal nature of the session does have the potential to be the starting point for a new move. However, the probability of any trend action is more likely to just be the MKT defining its new consolidation extreme.
- On the BUY side BREAKOUT, FADE and REVERSAL strategies are valid, however profit and position risk management should be aggressive and anticipated. The MKT is "on the fence" and does have the potential to be the beginning of a new trend move. The probability of a new trend move is low. However, any price trend action is more likely to just be the MKT defining its new consolidation extremes.

Today's PRICE MAP Performance for BOBL

 

Wrap Up
- With an MC Value of 0 and a NEUTRAL DIGESTION state, the market is "on the fence".  The BOBL opened the day below the R Level which indicating that traders should look for SELL signals below the R Level.  Just before midnight, the market met support at the DP.  From here, the market advanced throughout the early morning and tested the DIR just after 3:00 A.M.  This was the key moment in today's trading, as a failure from the R would validate that level and signal to the trader to short the market.  Price action respected the R Level perfectly and gave our traders an opportunity to execute a SELL DIR FADE strategy.  Ideally our profit target would be two major Price Map levels from our entry, giving us a target of the UT1; however, in a NEUTRAL market, expectations are for a choppy trade, and the DP would be a safer exit point.  As it played out, the market blew through the DP and did in fact make it all the way down to our ideal profit target at the UT1.  After finding support at the 124.84 level, the market rallied back up to the DP.  The market failed twice to surpass this level which signaled that the market was defining a new digestive range below the DP.

DJI FUTURES INDEX

Today's MARKET STATE for DJI FUTURE INDEX: **BULL TREND CORRECTION**

- The MKT has a soft tone against an underlying positive trend. On the SELL side accept UP FADE signals on the 1st or 2nd press into the area only. REVERSAL strategies should only be done off the UP or the previous session high point and will immediately work if they are going to. Keep position and risk management tight on these trades. SELL DP BREAKOUT strategies are aggressive but do have potential to be the start of a larger corrective turn. Keep risk management tight.
- On the BUY side accept REVERSAL signals off all major inflection levels, expecting the underlying positive momentum to resume. DP 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 DIR and UP BREAKOUT strategies as any positive shift in momentum has the potential to be the start of the next leg higher. DIR FADE strategies after the UP Breakout should use greater leverage.

Today's PRICE MAP Performance for YM

Wrap Up
- Today in the DJI FUTURES INDEX we had a MC Value of +2 and a BULL TREND CORRECTION Market State.  This state tells us that the market has produced a corrective signal; however, the underlying trend is positive and must be respected.  With the R Level at the DIR, a breach above this level has the potential to be the start of the next move higher.  Around 1 A.M. the market tested the DIR in a tight digestive zone, after retreating briefly, the BUY DIR BREAKOUT signal was given to get long the market just after 1:30.  The trade wasted no time in advancing up through the minor level, above which the market digested for the greater portion of the morning session.  The minor level held support 4 times throughout the morning session, until finally, after testing the UP 3 times, the market broke out of the Critical Range just after 8:30 A.M.  After rallying up to the next minor level at 13324, the market paused to take a breath, and eventually made it all the way up around 13350.  Although our profit target at the UT1 was not attained, stops should have been tightened on the way up, and if a trader hadn't closed the position around 13350, profit give-back should have been minimized by tightened stops on the trade.