Thursday, July 29, 2010
Nasdaq 100 Index Futures - ON THE HOT SEAT
Technically the MKT is in NEUTRAL TRANSITION and difficult trading conditions are expected. The MKT has produced an aggressive sell signal which should weigh on the MKT today if the signal is valid. If the integrity of the prior session's low remains intact a return to a sideways trend less trade is likely. Roll with any new weakness and leverage up if good risk parameters present themselves. The potential to get in at the beginning of a new move lower is real.
Key off the 1858.50 Inflection Pivot for an indication of the session tone. Below here the negative signal is in play and the MKT vulnerable.
On the SELL side be more aggressive after the previous session low is taken out. Not that this is a pre-condition but should be noted as a confirmation of weakness. BREAKOUT strategies below 1836.75 should just "go" so keep risk parameters tight. FADE into any positive reaction off an unsuccessful downside BREAKOUT against 1858.50. Use a REVERSAL strategy to leverage up back under the original failure point. If the integrity of the previous session low remains intact, avoid REVERSAL strategies as expectations are that the "negative" signal is going to follow through it should do so straight away and any break in the negative momentum is a positive signal that the MKT is going to return to its neutral posture. FADE strategies against 1877.75 are recommended early in the session or near the end. The negative signal will either play out from the get go or will weigh on the MKT in the latter stages of the trading session.
On the BUY side REVERSAL strategies can be executed off the 1836.75 or near the previous session low point. Avoid this strategy on lower levels as any new weakness has the potential to be the beginning of a move. If the integrity of the previous session low remains intact FADE strategies can be accepted at or near this inflection point on the initial test with tight profit target objectives. If the MKT has already had a reaction off this support area avoid this strategy. Use BREAKOUT strategies above 1877.75 as a signal to FADE a negative pull-back at 1858.50. Only take this trade if the previous session low point remains intact. Otherwise this will be a SELL REVERSAL opportunity.
Note: This is a dangerous emotional trading environment. You should expect the MKT reactions to go a little further that you expect in either direction so anticipate this in your position and risk management.
JS
* ENTRY STRATEGY - 5min web video explaining FADE, BREAKOUT and REVERSAL strategies http://www.jsservices.com/education/sbt/CME_EntryStrategies5min.wmv .
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Wednesday, July 28, 2010
AUDUSD Forex - CORRECTIVE SIGNAL
Technically the MKT is in a NEUTRAL CORRECTIVE state producing a big negative signal against a positive trend. Opportunity exists on both sides of the MKT, however as long as the MKT is above the 8895 Inflection Pivot its just an opportunity to get back on the positive momentum.
On the SELL side avoid FADE strategies until after the previous session low point or major support level has been broken to confirm a negative shift in momentum. REVERSAL strategies should be avoided as any positive signal is more likely an indication that the underlying trend is going to resume. SELL BREAKOUT strategies can be profitable but they are aggressive and should look to take profits and potentially REVERSE long at support targets. The trade is counter trend so avoid any negative commitments.
On the BUY side accept BREAKOUT, FADE and REVERSAL strategies off major inflection points with the expectation that the positive momentum is going to resume. REVERSAL strategies are recommended over a FADE strategies, which should have at least 1 if not 2 challenges to the support integrity before executing a long off it. BREAKOUT strategies can risk a little more if current events and other MKTs of confluence confirm a positive posture. If not a better approach would be to FADE a negative "squeeze" reaction after a positive breakout signal as the neutral technical position can keep the trend sideways.
Note: The MKT has produced a big technical signal against the current trend. Be aware that the negative action may be a 1-day event with the positive trend quickly re-establishing itself. If the MKT is really going to turn it should remain hard pressed and provide little or no relief.
JS
* ENTRY STRATEGY - 5min web video explaining FADE, BREAKOUT and REVERSAL strategies http://www.jsservices.com/education/sbt/CME_EntryStrategies5min.wmv .
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Tuesday, July 27, 2010
CRUDE OIL Futures - CORRECTIVE
Technically the MKT is in a NEUTRAL CORRECTIVE state producing a big negative signal against a positive trend. Opportunity exists on both sides of the MKT, however the contract will remain vulnerable to further losses with all trading below the 78.26 Inflection Pivot.
On the SELL side avoid FADE strategies against 78.26 and 77.49 until after the previous session low point or major support level has been broken to confirm a negative shift in momentum. REVERSAL strategies should be avoided as any positive signal is more likely an indication that the underlying trend is going to resume. SELL BREAKOUT strategies below 76.72 can be profitable but they are aggressive and should look to take profits and potentially REVERSE long at support targets. The trade is counter trend so avoid any negative commitments.
On the BUY side accept BREAKOUT, FADE and REVERSAL strategies off major inflection points with the expectation that the positive momentum is going to resume. REVERSAL strategies are recommended over a FADE strategies off the 76.72 support pivot, which should have at least 1 if not 2 challenges to the support integrity before executing a long off it. BREAKOUT strategies above 78.26 can risk a little more if current events and other MKTs of confluence confirm a positive posture. If not a better approach would be to FADE a negative "squeeze" reaction after a positive breakout signal as the neutral technical position can keep the trend sideways.
Note: The MKT has produced a big technical signal against the current trend. Be aware that the negative action may be a 1-day event with the positive trend quickly re-establishing itself. If the MKT is really going to turn it should remain hard pressed and provide little or no relief.
JS
* ENTRY STRATEGY - 5min web video explaining FADE, BREAKOUT and REVERSAL strategies http://www.jsservices.com/education/sbt/CME_EntryStrategies5min.wmv .
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Monday, July 26, 2010
CORN Futures - VULNERABLE
Technically the MKT is in a BEAR TREND ACCELERATION position and is vulnerable to the offer. Any positive corrective action below the 388-0 Inflection Pivot is expected to be short lived with only one upside "stop squeeze" if the negative moemtnum is going to play out. Any held strength and repeated probe higher is a sign that the trade will turn digestive. This does not take away from the negative bias but does limit the profit potential for any new sales in the session.
On the SELL side accept FADE, REVERSAL and BREAKOUT strategies. BREAKOUT strategies below 374-4 should just "go", so do not risk much. FADE strategies are recommended over REVERSAL at 388-0 strategies as the MKT is expected to hold lower structure and any momentum shift should be considered a potential positive corrective turn. REVERSAL strategies can be used at the 383-4 resisrance pivot as well as FADEs.
On the BUY side avoid REVERSAL strategies off major support levels as these signals are more likely short squeeze rallies and opportunities to SELL into and FADE. BREAKOUT strategies above 388-0 long shot, so risk less and go for more. Any BUY FADE off the 374-4 support pivot should have confirmation and are not recommended if the integrity of the previous session high is intact. After a break in the negative structure confirmed support levels can be used for short term reactions using aggressive position management.
Note: The MKT is in an aggressive sell posture. If the previous session high is intact its just a matter of time before the sellers try to overwhelm the MKT. Look for excuses to get short. If the previous session high is breached opportunity will be on both sides of the MKT, however the bias still rests with the Bears.
JS
* ENTRY STRATEGY - 5min web video explaining FADE, BREAKOUT and REVERSAL strategies http://www.jsservices.com/education/sbt/CME_EntryStrategies5min.wmv .
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Thursday, July 22, 2010
GBPUSD FOREX - POSITIVE SIGNAL NEEDS CONFIRMATION
Technically the MKT is in NEUTRAL TRANSITION and difficult trading conditions are expected. The MKT has produced an strong positive signal which should keep the MKT firm today if the signal is valid. If the integrity of the prior session's high remains intact a return to a sideways trend less trade is likely. Roll with any new strength and leverage up if good risk parameters present themselves. The potential to get in at the beginning of a new move higher is real.
Key off the 15245 Inflection Pivot today for a clue to the session tone. Above here the positive signal is in play. Below here and a soft sideways trade is the expectation.
On the SELL side REVERSAL strategies can be executed off 15322 or near the previous session high point. Avoid this strategy on higher levels as any new strength has the potential to be the beginning of a move. If the integrity of the previous session high remains intact FADE strategies can be accepted at or near this inflection point on the initial test with tight profit target objectives. If the MKT has already had a reaction off this resistance area avoid this strategy. Use BREAKOUT strategies under 15206 as a signal to FADE a positive pull-back against 15245 after a confirm break in the positive momentum. Only take this trade if the previous session high point remains intact.
On the BUY side be more aggressive after the previous session high is taken out. Not that this is a pre-condition but should be noted as a confirmation of strength. BREAKOUT strategies above 15322 should just "go" so keep risk parameters tight. FADE into any negative reaction off an unsuccessful upside BREAKOUT after a support level is confirmed. Use a REVERSAL strategy to leverage up after the MKT gets back above the original breakout point. If the integrity of the previous session high remains intact, avoid REVERSAL strategies as expectations are that the "positive" signal is going to follow through it should do so straight away and any break momentum is a negative signal that the MKT is going to return to its neutral posture. FADE strategies are recommended off the 15206 support pivot early in the session or near the end. The positive signal will either play out from the get go or will make its move in the latter stages of the trading session.
Note: This is a dangerous emotional trading environment. MKT reactions to go a little further that you expect in either direction so anticipate this in your position and risk management.
JS
* ENTRY STRATEGY - 5min web video explaining FADE, BREAKOUT and REVERSAL strategies http://www.jsservices.com/education/sbt/CME_EntryStrategies5min.wmv .
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Tuesday, July 20, 2010
NASDAQ 100 INDEX Futures - LOOKING FOR LOVE
Technically the MKT is in a NEUTRAL TRANSITION with the potential for a positive turn. Opportunity exists on both sides however there is a better chance of acceleration to the upside if the integrity of the previous session low remains intact.
Key off the the 1818 Inflection Pivot for an indication of the session bias. A held trade above here keeps the positive opportunity in play.
On the SELL side avoid FADE strategies until after the previous session low point or major support has been broken to confirm a shift in momentum. Until then a better opportunity will be a REVERSAL strategy at the 1864.50 resistance pivot. This is a one shot trade using a low risk big profit target criteria. The idea is that the transition trade is over and a negative shift back into a NEUTRAL DIGESTION is expected. SELL BREAKOUT strategies below 1818 can be profitable but they are aggressive and should use the same aggressive position management as a REVERSAL. Risk less go for more.
On the BUY side accept BREAKOUT, FADE and REVERSAL strategies with the expectation that the current negative to positive transition will continue. Keep aggressive position management on BREAKOUT strategies off 1841.25 and 1864.50 as the MKT is still in the neutral zone and has yet to commit to a new trend. A more conservative strategy would be to wait for negative reactions after a positive signal to FADE at 1841.25 or 1818. The trade should be fluid with the MKT immediately taking back lost ground after any downside squeeze.
Note: The MKT is trying to shift from a negative to a positive trend position. False starts and stops should be expected and position management adjustment anticipated, as quick momentum turns are the norm in this technical environment.
JS
* ENTRY STRATEGY - 5min web video explaining FADE, BREAKOUT and REVERSAL strategies http://www.jsservices.com/education/sbt/CME_EntryStrategies5min.wmv .
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Monday, July 19, 2010
DEC'10 CORN Futures- CORRECTIVE
Technically the MKT is in a NEUTRAL CORRECTIVE state producing a negative signal against a positive trend. Opportunity exists on both sides of the MKT.
Key off the 395-4 Inflection Pivot for an indication of the session tone. A held trade above here keeps the MKT's legs under it and the underlying positive momentum intact. A held failure here and sentiment turns sour with further corrective action expected. A break under 390-2 confirms this outlook.
On the SELL side avoid FADE strategies against 400-6 until after the previous session low point or major support level has been broken to confirm a negative shift in momentum. Until then a better opportunity will be a REVERSAL strategy but only off the 1st major resistance level. This is a one shot trade using a low risk big profit target criteria. The idea is that if the MKT is going to follow through on its negative signal any strength is just a "head fake " before it follows through. SELL BREAKOUT strategies below 390-2 can be profitable but they are aggressive and should look to take profits and potentially REVERSE long at support targets. The trade is corrective and the underlying positive tone must be respected.
On the BUY side accept BREAKOUT, FADE and REVERSAL strategies off major inflection points with the expectation that the positive momentum is going to resume. REVERSAL strategies are recommended over a FADE strategies off the 390-2 support pivot, which should have at least 1 if not 2 challenges to the support integrity before executing a long off it. BREAKOUT strategies above 400-6 can risk a little more if current events and other MKTs of confluence confirm a positive posture with the expectation that the Bull Trend is going to resume. If not a better approach would be to FADE a negative "squeeze" reaction off the 395-4 Inflection Pivot after a positive breakout signal as the neutral technical position can keep the trend sideways.
Note: The MKT is in a corrective position with the potential to move in either direction. Keep your opinions to themselves and focus on what the MKT is telling you it wants to do. Don't fight it, roll with it.
JS
* ENTRY STRATEGY - 5min web video explaining FADE, BREAKOUT and REVERSAL strategies http://www.jsservices.com/education/sbt/CME_EntryStrategies5min.wmv .
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Sunday, July 18, 2010
EUREX - BUND Futures - PROVE IT
Technically the MKT is in a DIGESTIVE BULL TREND and is flirting with a shift into a more aggressive positive position. Look for excuses to get long but respect the digestive nature and avoid pressing any position.
Key off the 12955 Inflection Pivot for the confirmation or denial of this forecast. Above here the positive momentum stays in command targeting 12986 and 13036. A rejection and the MKT will be back down at 12892 in no time, if not worse.
On the SELL side avoid FADE strategies and use a REVERSAL instead at 12955. The MKT is excited but has yet to confirm any new advance. Expectations are that any false positive breakout signal will be met with a sharp negative reaction. BREAKOUT strategies below 12892 are a lower probability but are valid and in line with a reversal scenario. If the MKT has already produced a false positive signal and is holding negative reversal structure, this strategy has potential. Expectations are that any negative BREAKOUT should just go and with the MKT staying under pressure into the close and expanding the digestive range. Anticipate a positive turn and consider reversing off lower support structure.
On the BUY side accept FADE, BREAKOUT and REVERSAL strategies. BREAKOUT strategies above 12955 have the potential to run. If so, they will just "go" and not look back. Any stop and go action and any profits should be realized as it is more likely the MKT will be setting up a re-test of support to FADE off 12923 before it can extend higher. FADE and REVERSAL strategies should work off the 12892 support pivot and only provide one opportunity. Repeated tests or base building and it is more likely the MKT is going to search for its lower digestive extreme rather than resume a positive course.
Note: The MKT has produced a positive signal but is not confirmed. Be ready for it but if it does not materialize, beware of a negative reaction. Don't get caught fading a break that continues to hold structure as the MKT may be defining its lower digestive extreme and will most likely find it after it hits your last sell stop.
JS
* ENTRY STRATEGY - 5min web video explaining FADE, BREAKOUT and REVERSAL strategies http://www.jsservices.com/education/sbt/CME_EntryStrategies5min.wmv .
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Wednesday, July 14, 2010
GBPUSD Forex - NEEDS A SPARK
Technically the MKT is in a BULL TREND posture and has just produced a major technical signal in the direction of the trend. If the integrity of the 15057 Inflection Pivot remains intact, look for excuses to get long. This is the low point for any pull-back today and the base for the underlying positive momentum.
On the SELL side BREAKOUT strategies below the 15144 and 15057 support levels are a low probability but valid. Risk little and go for a lot. If the MKT is going to turn sour, it should be quick and relentless. Avoid FADE strategies against the 15318 resistance as the MKT has just produced a major buy signal and fresh gains are expected. REVERSAL strategies as well are not recommended, as any resistance level violation that cannot be held is more likely a squeeze for the longs, which can quickly turn positive.
On the BUY side BREAKOUT, FADE and REVERSAL are recommended as the MKT is aggressively 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, leverage up using the squeeze low as a stop, expecting a quick reaction back above your original entry. De-leverage unless you have confluence with other indicators or like MKTs. Best opportunities to get long will be off the 15144 and 15057 support.
Note: The MKT has produced a big positive technical signal and should immediately go higher, after at most, one pullback. A laborious trade and the MKT may wait till the end of the session to make its move.
JS
* ENTRY STRATEGY - 5min web video explaining FADE, BREAKOUT and REVERSAL strategies http://www.jsservices.com/education/sbt/CME_EntryStrategies5min.wmv .
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Tuesday, July 13, 2010
USDJPY Forex - SMOKE AND MIRRORS
Technically the MKT is in a BEAR TREND CORRECTION but remains vulnerable to downside with all trading below 8948. Positive corrective action can disappear quickly so avoid leveraging up on any rally as the negative momentum will try to re-establish itself.
Key off the 8838 Inflection Pivot. This is the base keeping the positive corrective trade alive. A failure here is needed to put the currency back on the ropes.
On the SELL side accept FADE, REVERSAL and BREAKOUT strategies. BREAKOUT strategies below 8838 should just "go" with expectations that the negative momentum is going to resume course. These opportunities should be executed as a "one-shot" deal to avoid getting "chopped" up in a digestive trade. A more conservative entry would be to wait for a positive reaction after a negative breakout signal to FADE against 8893. FADE strategies at 8948 and 8999 should wait for confirmation as the MKT is correcting and has the potential to be "stop and go" as it probes higher. Keep profit targets tight. A better strategy is a REVERSAL, as a violation of a major inflection point that cannot be held is a negative turning point signal with the potential to be the resumption of the negative trend. Profit targets on these strategies should be greater.
On the BUY side BREAKOUT strategies above 8948 although aggressive can be profitable as long as the corrective rise maintains structure. Once broken any trading from the long side is questionable and it may be time to roll the other direction. Use basic trend following indicators to aid in position management of these trades. REVERSAL strategies off 8838 or near the previous session or move low will work best with the expectations that the MKT is going to shift into a more neutral digestive state. Keep profit targets and position management tight on these strategies.
Note: The MKT is correcting an aggressive negative trend and more likely to resume that trend than not. This being said the worst case scenario for sellers expecting the trend to resume is a low volatility "one-way" trade higher. Don't be stubborn FADING higher corrective move highs. After 2 or more losing sales take a break and wait for potential opportunity in the later part of the session. JS
* ENTRY STRATEGY - 5min web video explaining FADE, BREAKOUT and REVERSAL strategies http://www.jsservices.com/education/sbt/CME_EntryStrategies5min.wmv .
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Canadian Dollar Futures - TRUTH OR DARE
Technically the MKT is in a NEUTRAL DIGESTIVE position with a negative bias. Opportunity exists on both sides of the MKT but the threat of a negative turn is real.
Key off the 9606 Inflection Pivot for an indication of the session tone. If the MKT is bad it will struggle to maintain a trade above here. If so a difficult sideways trade is expected with 9692 the expected digestive high point.
On the SELL side accept FADE, BREAKOUT and REVERSAL strategies off major inflection points. SELL BREAKOUT strategies below 9606 should just "go" and not look back, so keep risk parameters tight. FADE strategies after a negative breakdown signal are good opportunities as well against 9649 but expectation should be for the MKT to quickly move back under the failed support. If the trade just "hangs around" is more likely a signal that more digestive action is coming and a retest of resistance should be expected. Be more aggressive with FADE and REVERSAL strategies at 9692 or against the previous session high point targeting the opposing digestive support. Above the previous session high point entering after the 2nd or 3rd press into an area is recommended over stepping in front of the initial challenge.
On the BUY side BREAKOUT strategies above 9692 are aggressive and should be entered sooner [lower] than later [higher]. Expectations should be for the MKT to make its move early in the session and not look back, holding strucutre most of the day. If the MKT digests prior to making a positive move it is more likely a short squeeze to FADE. BUY FADE strategies off 9606 are aggressive and if they are going to work should do so on the initial test of support. Repeated tests or "confirmation" are more likely to give way to a lower trade. BUY REVERSAL strategies at 9606 are recommended off the session initial major support only, as the MKT is vulnerable to a negative trend shift. The probability is to the downside today so don't get stubborn buying breaks.
Note: The MKT is in neutral so "sloppy" conditions with "false signals" should be anticipated. Have a plan for any squeeze. Don't get stubborn however if the MKT starts to hold structure and gets into trend mode as the contract may just be expanding its digestive parameters producing a one way trade into the close and new extreme.
JS
* ENTRY STRATEGY - 5min web video explaining FADE, BREAKOUT and REVERSAL strategies http://www.jsservices.com/education/sbt/CME_EntryStrategies5min.wmv .
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Sunday, July 11, 2010
SP500 INDEX Futures - EXTENDED
Technically the MKT has produced a major positive signal into the upper extreme and will need to hold structure if it is going to avoid a drop back into a digestive trade.
Key off the 1054 Inflection Pivot as the low point for the underlying positive structure. If the bias is going to remain firm and pull-back will bottom out above here. A held breach of 1079.50 shifts the Index back into a positive position for a new leg north.
On the SELL side FADE signals are valid but REVERSAL strategies are a better option at the 1079.50 resistance pivot. Have resting limit orders off support inflections and use aggressive position management to lock in any unrealized gains on any REVERSAL trade. 1071 and 1062.50 BREAKOUT strategies are aggressive but do have the potential to profit from a quick negative move out of the extreme targeting the 1054 support. Use tight position management for these strategies as any unrealized profits can be erased quickly by the underlying positive momentum.
On the BUY side accept FADE at 1062.50 and 1054 signals after confirmation. The MKT is extended and may search for stops before it resumes its Bull move. REVERSAL strategies are a better option. The sharper the break, the better for an entry with the expectations that the MKT is going to revisit the recent move high. BUY DIR and BREAKOUT strategies above 1079.50may need to be "worked" as the MKT is extended and has the potential to produce some starts and stops.
JS
* ENTRY STRATEGY - 5min web video explaining FADE, BREAKOUT and REVERSAL strategies http://www.jsservices.com/education/sbt/CME_EntryStrategies5min.wmv .
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Thursday, July 8, 2010
DOW FUTURES - TRYING TO TURN THE CORNER
Technically the MKT is in a NEUTRAL CORRECTIVE state producing a big positive signal against a negative trend. Opportunity exists on both sides of the MKT.
Key off the 9952 Inflection Pivot today. This is the base supporting the MKTs new found strength. Above here the corrective trade continues. Below here and the fear factor returns.
On the SELL side accept BREAKOUT, FADE and REVERSAL strategies off major inflection points with the expectation that the negative momentum is going to resume. REVERSAL strategies are recommended over a FADE strategies off the 10144 resistance, which should have at least 1 if not 2 challenges to the integrity of the resistance before executing a sale against it. BREAKOUT strategies below 10028 and 9952 can risk a little more if current events and other MKTs of confluence confirm a negative posture. If not a better approach would be to FADE a positive "squeeze" reaction after a negative breakdown signal against 10067 as the neutral technical position can keep the trend sideways.
On the BUY side avoid FADE strategies off the 10028 and 9952 support levels until after the previous session high point or major resistance level has been taken out to confirm a positive shift in momentum. REVERSAL strategies should be avoided as any negative signal is more likely an indication that the underlying trend is going to resume. BUY BREAKOUT strategies above 10144 can be profitable but they are aggressive and should look to take profits and potentially REVERSE short at resistance targets. The trade is counter trend so avoid any positive commitments.
Note: The MKT has produced a big technical signal against the current trend. Be aware that the positive action may be a 1-day event with the negative trend quickly re-establishing itself. If the MKT is really going to turn it should remain firm and not look back.
JS
* ENTRY STRATEGY - 5min web video explaining FADE, BREAKOUT and REVERSAL strategies http://www.jsservices.com/education/sbt/CME_EntryStrategies5min.wmv .
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Wednesday, July 7, 2010
U.S. 30YR Treasury Bond Futures - TIME TO PLAY A CARD
Technically the MKT is in NEUTRAL TRANSITION and difficult trading conditions are expected. The MKT has produced a negative signal which should follow through today if the signal is valid with confirmation a break under the 126-19 Inflection Pivot. If the integrity of the 126-19 Inflection Pivot remains intact a return to a sideways trend less trade is likely. Roll with any new weakness below here and leverage up if good risk parameters present themselves. The potential to get in at the beginning of a new move lower is real.
On the SELL side be more aggressive after the 126-19 level is taken out. Not that this is a precondition but should be noted as a confirmation of weakness. BREAKOUT strategies below should just "go" so keep risk parameters tight. FADE into any positive reaction off an unsuccessful downside BREAKOUT against the 127-14 level. Use a REVERSAL strategy to leverage up back under the original failure point. If the integrity of the 126-19 level hold, avoid REVERSAL strategies at the 128-09 resistance level as any break in the negative momentum is a positive signal that the MKT is going to return to its neutral posture. FADE strategies against here are recommended early in the session or near the end. The negative signal will either play out from the get go or will weigh on the MKT in the latter stages of the trading session.
On the BUY side REVERSAL strategies can be executed off of 126-19. Avoid this strategy on lower levels as any new weakness has the potential to be the beginning of a move. FADE strategies can be accepted at or near this inflection point on the initial test with tight profit target objectives. If the MKT has already had a reaction off this support area avoid this strategy. Use BREAKOUT strategies above 128-09 as a signal to FADE a negative pull-back off 127-14 after a confirm break in the negative momentum. Only take this trade if the 126-19 support remains intact. Otherwise this will be a SELL REVERSAL opportunity.
Note: Transitional trading conditions are difficult and can be full of false stops and starts. Be ready for a move but be prepared to work for it.
JS
* ENTRY STRATEGY - 5min web video explaining FADE, BREAKOUT and REVERSAL strategies http://www.jsservices.com/education/sbt/CME_EntryStrategies5min.wmv .
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Tuesday, July 6, 2010
GOLD Futures - LOST LUSTER
Technically the MKT is in NEUTRAL TRANSITION and difficult trading conditions are expected. The MKT has produced a negative signal which should follow through today if the signal is valid. If the integrity of the prior session's low remains intact a return to a sideways trend less trade is likely. Roll with any new weakness and leverage up if good risk parameters present themselves. The potential to get in at the beginning of a new move lower is real.
JS
* ENTRY STRATEGY - 5min webvideo explaining FADE, BREAKOUT and REVERSAL strategies http://www.jsservices.com/education/sbt/CME_EntryStrategies5min.wmv .
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Key off the 1212.6 Inflection Pivot. This is the high point for any positive squeeze if the negative signal is going to follow through.
On the SELL side be more aggressive after the previous session low is taken out. Not that this is a pre-condition but should be noted as a confirmation of weakness. BREAKOUT strategies below 1183.5 should just "go" so keep risk parameters tight. FADE into any positive reaction off an unsuccessful downside BREAKOUT against 1193.2. Use a REVERSAL strategy to leverage up back under the original failure point under 1183.5. If the integrity of the previous session low remains intact, avoid REVERSAL strategies against 1212.6 as any break in the negative momentum is a positive signal that the MKT is going to return to its neutral posture. FADE strategies at 1202.9 and 1212.6 are recommended early in the session or near the end. The negative signal will either play out from the get go or will weigh on the MKT in the latter stages of the trading session.
On the BUY side REVERSAL strategies can be executed off 1183.5 or near the previous session low point. Avoid this strategy on lower levels as any new weakness has the potential to be the beginning of a move. If the integrity of the previous session low remains intact FADE strategies can be accepted at or near this inflection point on the initial test with tight profit target objectives. If the MKT has already had a reaction off this support area avoid this strategy. Use BREAKOUT strategies above 1212.6 as a signal to FADE a negative pull-back at 1193.2 after a confirm break in the negative momentum. Only take this trade if the previous session low point remains intact. Otherwise this will be a SELL REVERSAL opportunity.
Note: Transitional trading conditions are difficult and can be full of false stops and starts. Be ready for a move but be prepared to work for it.
* ENTRY STRATEGY - 5min webvideo explaining FADE, BREAKOUT and REVERSAL strategies http://www.jsservices.com/education/sbt/CME_EntryStrategies5min.wmv .
To learn more about JS Services Strategy Based Trading approach please contact me at info@jsservices.com. You can also visit http://www.jsservices.com/ and sign up for a Complimentary FREE Trial.
Saturday, July 3, 2010
EURUSD FOREX - TRYING TO MAKE A DIFFERENCE
Technically the MKT is in a DIGESTIVE BULL TREND and is flirting with a shift into a more aggressive positive position. Look for excuses to get long but respect the digestive nature and avoid pressing any position.
Key off the 12483 Inflection Pivot for an indication of the markets tone. As long as the currency is above this price point the bias is positive. A failure here and the digestive nature of the technical state will take over.
On the SELL side avoid FADE strategies and use a REVERSAL instead against the 12610 resistance pivot. The MKT is excited but has yet to confirm any new advance. Expectations are that any false positive breakout signal will be met with a sharp negative reaction. BREAKOUT strategies below 12483 are a lower probability but are valid and in line with a reversal scenario. If the MKT has already produced a false positive signal and is holding negative reversal structure, this strategy has potential. Expectations are that any negative BREAKOUT should just go and with the MKT staying under pressure into the close and expanding the digestive range. Anticipate a positive turn and consider reversing off lower support structure.
On the BUY side accept FADE, BREAKOUT and REVERSAL strategies. BREAKOUT strategies above the 12610 resistance have the potential to run. If so, they will just "go" and not look back. Any stop and go action and any profits should be realized as it is more likely the MKT will be setting up a re-test of support to FADE before it can extend higher. FADE and REVERSAL strategies should work off 12483 and only provide one opportunity. Repeated tests or base building and it is more likely the MKT is going to search for its lower digestive extreme rather than resume a positive course.
Note: The MKT has produced a positive signal but is not confirmed. Be ready for it but if it does not materialize, beware of a negative reaction. Don't get caught fading a break that continues to hold structure as the MKT may be defining its lower digestive extreme and will most likely find it after it hits your last sell stop.
JS
* ENTRY STRATEGY - 5min webvideo explaining FADE, BREAKOUT and REVERSAL strategies http://www.jsservices.com/education/sbt/CME_EntryStrategies5min.wmv .
To learn more about JS Services Strategy Based Trading approach please contact me at info@jsservices.com. You can also visit http://www.jsservices.com/ and sign up for a Complimentary FREE Trial.
Thursday, July 1, 2010
GOLD Futures - LOSING LUSTER
Technically the MKT is in a BEAR TREND ACCELERATION and flirting with the lower extreme. The MKT has produced a big negative signal and any positive corrective action is expected to be short lived with only one upside "stop sweep" if the negative momentum is going to play out. Any held strength and repeated probe higher is a sign that the trade will turn digestive. This does not take away from the negative bias but does limit the profit potential for any new sales in the session.
The 1229.3 Inflection Pivot is the high point for any pull back if the negative momentum is going to resume. A break under the 1195.4 support confirms fresh losses.
On the SELL side accept FADE, REVERSAL and BREAKOUT strategies below the previous sessions high point. BREAKOUT below the 1206.7 and 1195.4 support pivot may need to be "worked" as the MKT is on edge and will be emotional, producing some starts and stops before it drops. FADE strategies against 1218 and 1229.3 are recommended over REVERSAL strategies as the MKT is expected to hold lower structure and any momentum shift should be considered a potential positive corrective turn.
On the BUY side avoid REVERSAL strategies off 1195.4 and 1184.1 support as these signals are more likely short squeeze rallies and opportunities to SELL into and FADE. BREAKOUT strategies above the 1206.7 and 1229.3 are a long shot, so risk less and go for more. Any BUY FADE off 1195.4 should have confirmation and are not recommended if the integrity of the previous session high is intact. After a break in the negative structure confirmed support levels can be used for short term reactions using aggressive position management.
Note: The MKT is on edge and is vulnerable to a big drop. If the previous session high is intact its just a matter of time before the sellers try to overwhelm the MKT. Look for excuses to get short. If the previous session high is breached opportunity will be on both sides of the MKT, however the bias still rests with the Bears.
JS
To learn more about JS Services Strategy Based Trading approach please contact me at info@jsservices.com. You can also visit http://www.jsservices.com/ and sign up for a Complimentary FREE Trial.
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