STRATEGY BASED TRADING - BEAR TREND CORRECTION

No BULL TREND CORRECTIVE signals today for the MKTs covered.

There where a couple BEAR TEND CORRECTION signals, which strategy wise are the mirror image of the BULL TREND CORRECTIVE signal.



The MKT has been in an underlying negative trend and has produced a positive signal against the trend. Question, is the positive signal going to following through in a transitional trade or revert back to a BEAR TREND mode.

The R Level Inflection Pivot will define the session behavioral state confirming or denying the positive signal. Above the R Inflection Pivot the Transitional trade is in play for a strong corrective buy opportunity. Below the R Inflection Pivot the contract is vulnerable to a return to the negative trend.

For today, September 23 2009 - The following MKTs are in a BEAR TREND CORRECTIVE state:

CL = CRUDE OIL Nov'09 - 71.30 Inflection Pivot

C= Corn Dec'09 - 3.240 Inflection Pivot

Crude Oil Dec'09

The Dec'09 CRUDE OIL contract produced a positive signal against a negative trend. If the signal is going to remain the play the MKT will continue to trade above the 71.30 Inflection pivot, flirting with a transitional shift into a more aggressive positive position. A held trade below 71.30 and the contract is vulnerable to a retreat down to the 67.00 support area.

Work BUY FADE opportunities off the the 71.30 level looking to REVERSE Short on a failure. This inflection point may be messy as the contract is in the middle of a big digestive range. Be aware an keep risk parameters wide to avoid the chop.
A BREAKOUT above yesterday's high at 72.00 will bring in fresh interest with 75.50 targeted.


CORN Dec'09
The Dec'09 CORN MKT produced a positive signal against a negative trend. If the positive signal is going to follow through it will maintain a trade above the 3.240 Inflection with the potential to take out the recent high at 3.480.

A held trade under 3.240 and the MKT is vulnerable to a return to the BEAR TREND pressing support at 3.100. If the contract is going to stabilize it will here. If not the sellers are expected to get aggressive.

Both MKTs are trading above their Inflection Pivots and expectations for both MKTs will be for positive follow through. Trading above the R Level Inflection Pivot should be from the long side. Only use REVERSAL entry strategies at higher resistance levels to initiate a short position, as the bias is to the plus side above the R Level Inflection Pivot.

Below the R Level Inflection Pivot be more aggressive with sell signals. Buy signals should be suspect as the positive momentum should have accelerated and if it does not, the likely hood of a sideways trade is high. Sales below the Inflection Pivot do have potential to be the high point for the next leg lower.

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 Reviewhttp://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.