The Dec'09 30yr T-Bond found its footing and is and is trying to stabilize off the 119-20 inflection pivot. Technically this MKT is in a BULL TREND DIGESTION posture.
In this state the underlying tone is positive however a "stop and go" trade is likely. Where strong surges of optimism fizzle and are followed by sharp corrective action. This will be the mode above 119-20 and below 122-02. Within this price trade difficult trading conditions should be expected.
A rise above 122-02 is need to give the contract a confidence boost for a steady trend posture where the MKT starts to hold positive structure. As long as this is so the momentum will target 124-03.
A break under 119-20 puts the contract is a soft transitional trade and vulnerable to a hard retreat down to the 118-07 recent low point. Use caution. Emotional trading conditions are expected with 115-05 the current extreme.
Understanding the MKT's technical state and the inflection points that define that state is the foundation of a balanced trading approach. For a practical application review of JS Services Strategy Based Trading approach for the 30yr T-Bond last week [Oct 5-9] click here http://www.jsservices.com/recaps/JSSReviewUS105909.wmv .
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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.
