EUREX BUND H'10 - BULL TREND ACCELERATION
Technically the MKT is in a BULL TREND ACCELERATION posture and has produced a big positive signal. The MKT is in "play" above the 12187 Inflection Pivot and aggressive action is expected off of technical signals. Anticipate opportunity and position management adjustments, as quick price action is likely.
On the SELL side REVERSAL strategies can be executed off the 12247 resistance pivot and the 12290 level. Expectations should be for an immediate exhaustive turn with the MKT quickly moving away from the area. A gradual decline folowing a reversal signal and it more likely just a pause before another round of buying, so in either scenerio keep position management tight. Avoid SELL FADE strategies against the 12247 resistance pivot even with confirmation, as this is more likely a lid for a BREAKOUT BUY strategy. SELL BREAKOUT strategies below 12187 are not recommended but can be used as a signal for a FADE against the 12217 Directional reisstance.
On the BUY side accept FADE, REVERSAL and BREAKOUT strategies above the 12187 Inflection Pivot. BREAKOUT strategies above 12247 should just "go", so do not risk much expecting a move up to 12290 and 12327. Be wary of these strategies early in the session and look to exit on the 1st break in strucutre. BUY FADE strategies off 12217 and 12187 are recommended over REVERSAL strategies as the MKT is expected to hold higher structure and any failure should be considered a potential negative corrective shift. The MKT is aggressively bid which should keep pace throughout the session if the TREND ACCELERATION forecast is going to play out.
Note: The worst-case scenario for a MKT in this technical position is to go higher early in the session and then break all day. Be alert to recognize this. If you have > 3 loser long trades consider taking the next sell signal anticipating a corrective turn. Remember in this technical position if the MKT is going higher it should just go. If not there is the potential for a corrective break or digestive trading environment.
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 Review http://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.
