- Technically the MKT is in a positive posture and as long as it continues to hold structure, further gains should be expected. If the integrity of the previous session low remains intact, look for excuses to get long.
- On the SELL side UP FADE strategies are valid but profit targets and risk management should be tight. REVERSAL strategies should be applied only at the UP and +c after an exhaustive signal. Use DP BREAKOUT strategies as a signal to FADE a positive reaction against the DIR. Only until the MKT breaks the positive structure are sell signals an opportunity.
- On the BUY side BREAKOUT, FADE and REVERSAL are recommended as the MKT is 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, look to re-enter using the recent squeeze low as a stop. If the MKT breaks structure, de-leverage and be more selective as the likelihood of a sideways trade is high.
- The DJI FUTURES INDEX was in a "Bull Trend" state and our expectation is for further gains throughout the day, provided positive structure remains in tact. The market moved sideways for most of the early session and eventually tested support at the DIR around 9 A.M. The third test right before 9:30 A.M. failed to make a lower low, providing traders with an opportunity to execute a BUY DIR FADE strategy. From here, the market took off, tested the UP twice, and then eventually moved higher through that level, maintaining positive structure throughout the entire move. The minor level above the UP held support and positive structure around 1 P.M. when the market had a brief pullback, and our trade target was eventually achieved at the UT 1 just after 1:30 P.M.
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