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.

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.

JS


* ENTRY STRATEGY - 5min webvideo explaining FADE, BREAKOUT and REVERSAL strategies http://www.jsservices.com/education/sbt/CME_EntryStrategies5min.wmv  .

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