- The MKT has produced a major positive technical signal and is flirting with a shift into a more aggressive trend position. Key off the 1150.50-1147.25 resistance band as a pivotal area for trading at these levels. If the MKT is going to extend higher it will build a base above here to make a run for the 1175 level. A held trade below 1147.25 signals a big digestive trade with the 1118.50 Inflection Pivot the low point for a new consolidation.
On the SELL side avoid UP FADE strategies and use a REVERSAL instead. 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. DP BREAKOUT strategies are a lower probability but are valid and in line with a reversal scenario.
- On the BUY side accept FADE, BREAKOUT and REVERSAL strategies. UP BREAKOUT strategies 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 the DIR support to FADE before it can extend higher. FADE and REVERSAL strategies should work off the DP 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.
JS
* ENTRY STRATEGY - 5min web video 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.
