- MKT sentiment is leaning negative and will outweigh the buy side if the integrity of the previous session high remains intact.
- On the SELL side accept BREAKOUT, FADE and REVERSAL strategies with the expectation that the current negative transition will continue. Keep aggressive position management on DP BREAKOUT strategies 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 positive reactions after a negative signal to FADE the DIR.
- On the BUY side avoid DP FADE strategies until after the previous session high point has been taken out. Until then, a better opportunity will be a DP REVERSAL strategy. The idea is that the transition trade is over and a positive shift back into a NEUTRAL DIGESTION is expected. UP BREAKOUT strategies can be profitable but they are aggressive. Risk less, go for more.
Today's PRICE MAP Performance for NEUT
In the CRUDE OIL futures market today, we had MC Value of -2 and a negative sentiment bias on the day. Our expectation is that today could produce a new move lower if the integrity of the previous session remains intact. At 8 A.M. we had a brief break of the UP, which was quickly reversed by 9:30, offering us a SELL UP REVERSAL trade. Another attempt at the UP failed at 10 A.M. giving us confirmation of the negative tone. Our expectation is that today may produce a new move lower, and indeed it did. The market had a sharp sell off around 11 A.M. and eventually stabilized at the lower end of our Critical Range at the DP. By defining the sentiment bias and the expected trading range for the day, JS traders were able to capitalize on the big move in CRUDE OIL today.
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