- The MKT is on the offer and pressing into the lower extreme. On the SELL side accept UP REVERSAL strategies over FADES, expecting more of a trendless trading environment rather than a new negative trend move. Avoid DP BREAKOUT strategies but rather FADE into a positive reaction after a negative breakdown signal against the DIR. The MKT is extended and will have trouble sustaining any new weakness. Use aggressive position management and anticipate potential early exit points to reduce profit give-back.
- On the BUY side DP FADE and REVERSAL strategies are qualified, however the FADE is a lower probability and should use tight risk criteria. DP and DT1 REVERSALS can risk more but should also go for more profit with the expectation of the MKT putting in a short term turning point signal. UP BREAKOUT strategies are aggressive and should just "go" and not look back. Risk less; use aggressive position management and conservative profit limits.
Today's PRICE MAP Performance for ND
Wrap Up
-Today we had a NEUTRAL NEGATIVE EXTREME Market State in the NASDAQ 100 Futures market. Our market commentary calls for SELL UP REVERSAL trades which is in line with our sentiment bias represented by the R Level. At 8:30 A.M. the market broke through the UP briefly and then sold off giving traders an opportunity to SELL the REVERSAL signal from the UP. The market again tested the UP just before 10 A.M. where it failed to produce a higher high before selling off sharply. The market wasted no time in falling down to the DIR where it digested for a bit and eventually traded down to our profit target at the DP. Today's NASDAQ 100 PriceMap illustrates the importance of defining Market State, Structure, and Strategy before each trading day.
