Technically the MAR'10 CORN market is at an extreme and is ready to either pop back into a firm neutral posture or break into a new down trend. Key off the 397-6 Inflection Pivot for an indication of the session tone.
On the SELL side BREAKOUT strategies below 391-2 should be worked as repeated tests of support are expected to give way to negative follow through. This strategy is vulnerable to the market, expanding its lower support band in a series of starts and stops. FADE strategies against 397-6 and 404-2 should expect an immediate reaction as any held trade or violation of major resistance foreshadows a potential turning point and an opportunity to "roll" into a long position when stopped out.
On the BUY side FADE and REVERSAL strategies off the 391-2 support pivot are qualified, however the FADE is a lower probability. REVERSALS off of this support can risk more but should also go for more profit with the expectation of a turning point "key reversal" signal to play out. BREAKOUT strategies above 404-2 are aggressive and should just "go" and not look back. Risk less and go for more. A laborious lackluster rise after a positive breakout is a sign that the MKT is more likely expanding its resistance lid for a new consolidation versus transition from negative to positive technical posture.
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 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.
