Today I'm going 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, November 30 2009 - The following MKTs are in a BULL TREND CORRECTIVE state:
GC = GOLD Jan'10 - 1158.9 Inflection Pivot
NG = NAT GAS Jan'10 - 4.809 Inflection Pivot
TY = 10YR T-NOTE Mar'10 - 119-04 Inflection Pivot
FV = 5YR T-NOTE Mar'10 - 116-297 Inflection Pivot
DA = Australian Dollar Dec'09 - 9179 Inflection Pivot
DRG = Pharmaceutical Sector Index - 307 Inflection Pivot
IIX = Inter@tive Internet Sector Index - 22511 Inflection Pivot
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.
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. 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.
Identifying MARKET STATE, STRUCTURE and STRATEGY solutions
