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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