JS Services Strategy Based Trading

Defining Market State, Structure, and Strategy is essential to becoming a successful trader. See how JS Services can help you reach your maximum potential!

The following web video provides the foundation to our Strategy Based Trading approach.

http://progressive.powerstream.net/008/00102/edu/interactive/js_services/strategy_based_trading/index.html

If you would like to sign up for a FREE TRIAL of JS Services click here.

If you have any questions, feel free to email us at: info@jsservices.com.

Good Trading!

SP500

Today's MARKET STATE for SP 500 FUTURES **NEUTRAL DIGESTION TRANSITION**

 

-Technically the MKT has the potential for appositive turn.  Opportunity exists on both sides, however there is a better chance of an acceleration to the upside if the integrity of the previous session low remains intact.  On the SEL side avoid UP and DIR DAFE strategies until after the previous session low point has been broken.  Until then, a better opportunity will be a UP REVERSAL strategy.  The idea is that the transition trade is over and a negative shift back into a NEUTRAL DIGESTION is expected.  DP BREAKOUT strategies can be profitable but they are aggressive.  Risk less, go for more.

-On the BUY side accept BREAKOUT, FADE and REVERSAL strategies with the expectation that the current positive transition will continue.  Keep aggressive position management on UP 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 negative reactions after a positive signal to FADE the DIR.

Today's PRICE MAP Performance for SP

Wrap Up
- Today in the SP 500 Futures market, we have a NEUTRAL DIGESTION TRANSITION market state, signalling to traders that if the R Level remains intact, the market has the potential to transition higher.  In the overnight session, we saw a strong move up to the UP.  Being cognizant of this overnight action allowed traders to identify the opportunity for the session.  Our market commentary tells us that BUY UP BREAKOUT strategies are aggressive, and a more conservative strategy would be to wait for a negative reaction back to the DIR after a positive breakout from the UP to enter the market from the long side.  The sell off just after 10 A.M. was the negative reaction we were looking for to get long the market from the DIR.  As it played out, the market held structure at the DIR perfectly at 10:45 A.M. allowing traders to execute a BUY DIR FADE strategy, taking profits at the UP.

10YR TREASURY NOTES

Today's MARKET STATE for DOW FUTURES **NEUTRAL POSITIVE SHIFT**

 

-Technically the MKT has produced a positive signal against a negative trend.  On the SELL side accept BREAKOUT, FADE and REVERSAL strategies off major inflection points with the expectation that the negative momentum is going to resume.  UP REVERSAL strategies are recommended over FADE, which should have at least 1 if not 2 challenges to its integrity before executing a short sale against it.  A better approach to a straight DP BREAKOUT strategy is to FADE a positive “squeeze” reaction after a negative breakdown signal against the DIR.

-On the BUY side avoid DIR and DP FADE strategies until after the previous session high point or major resistance has been taken out to confirm a break in momentum.  Until then, a better opportunity will be a DP REVERSAL strategy.  UP BUY BREAKOUT strategies can be profitable but they are aggressive and should look to take profits and potentially REVERSE short at resistance targets.

Today's PRICE MAP Performance for TY

Wrap Up
- With an MC shift of +4 the market has produced a NEUTRAL POSITIVE SHIFT.  With the R Level at the DP, we know to accept BUY strategies above this level.  As indicated by our market commentary, BUY UP REVERSAL strategies are aggressive and should look to take profits and REVERSE at our first resistance target (the UT1).  As today's session played out, the BUY UP BREAKOUT strategy could have been executed in the early session, taking profits at the initial resistance target of the UT1 at 9 A.M.  From here, our commentary tells us to reverse and go short the market at our initial resistance target (UT1).  By getting short the market from this level, we were able to capture the move back down to the UP and cover our short position at the UP at 11:30. 

DOW FUTURES

Today's MARKET STATE for DOW FUTURES **NEUTRAL DIGESTION**

-The MKT is in a sideways digestive position with a slight positive bias.

-On the SELL side avoid DP BREAKOUT strategies but rather FADE a positive reaction against the DIR after a negative breakdown signal.  UP and UT1 REVERSAL strategies are recommended over FADE strategies as “sloppy” trading conditions are expected.  Any UP FADE trades should get confirmation.

-On the BUY side UP BREAKOUT strategies are valid but should expect a laborious trade.  Work any position, selling into emotional surges and re-entering on any sharp pullbacks.  Expect a choppy trade and be aggressive on minimizing profit give-back.  DP and DT1 FADE and REVERSAL strategies are recommended.

Today's PRICE MAP Performance for YM

 

Wrap Up
- With an MC Value of 0 the DOW FUTURES market is in a NEUTRAL DIGESTION market state.  Given this information, we know to expect a sideways, choppy trade within the Critical Range.  After the R Level was taken out early in the session, traders should have looked to SELL any corrective rallies back up to the DIR where our R Level was.  The SELL R FADE strategy worked on two different occasions, at 9 A.M. and again at 11 A.M. making it back down to the lower end of our Critical range at the DP on both trades.

NASDAQ 100

Today's MARKET STATE for NASDAQ 100 **NEUTRAL POSITIVE SHIFT**

-Technically the MKT  Key off the R LEVEL sentiment bias level as this is a “tell” to the market’s true intentions.  On the SELL side accept BREAKOUT strategies only if they are in line with the R LEVEL sentiment bias.  The best opportunities will occur early in the session and will maintain negative structure in a steady deterioration or “pisser”.  UP REVERSAL can be profitable as false positive signals are typical in this trade state.  Keep aggressive position management.

- On the BUY side DP and DIR FADE strategies are advisable if they are in line with the R LEVEL bias or after the previous session high point has been violated.  DP REVERSAL strategies are only recommended if the R LEVEL is below the DP.  The idea is that any negative signal is a sign that the transitional trade is over and a 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 ND

Wrap Up
- Today in the NASDAQ 100 market, the Critical Range proved very effective in defining the expected trading range for the session.  With the R LEVEL at the DP, our market commentary tells us to key off this level and accept BUY DP FADE strategies, which are in-line with our Sentiment Bias.  Around 10:30 the market has a sharp sell off, stabilizing at the DP and allowing traders to execute the BUY DP FADE strategy that we were looking for in today's market state.  This trade worked immediately, building higher move highs and higher move lows throughout the rest of the session until eventually closing the day close to the UP.

NATURAL GAS

Today's MARKET STATE for NATURAL GAS **BULL TREND**

 

-The MKT has a firm tone and as long as 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.

Today's PRICE MAP Performance for NG

 

Wrap Up
- Today in the NATURAL GAS future market, the R Level along with our Critical Range helped traders capitalize on the highest probability trade of the day.  The market sold off sharply to our DP around 9:30 AM.  With the R Level at the DP in a BULL TREND market, we know that this is our optimal level to get into the market on the long side.  As it played out, the market respected the DP, allowing us to execute a BUY DP FADE strategy.  The market rallied sharply and at 10:30 AM profits should have been realized at the upper end of our Critical Range, the Upside Pivot.

10-YR TREASURY NOTES

Today's MARKET STATE for 10-YR TREASURY NOTES **BULL TREND CORRECTION**

-The MKT has a soft tone against an underlying positive trend.  On the SELL side accept UP FADE signals on the 1^st or 2^nd press into the area only.  REVERSAL strategies should only be done off the UP or the previous session high point and will immediately work if they are going to.  Keep position management tight on these trades.  SELL DP BREAKOUT strategies are aggressive but do have potential to be the start of a larger corrective turn.  Keep risk management tight.

-On the BUY side accept REVERSAL signals off all major inflection levels, expecting the underlying positive momentum to resume.  DP FADE strategies will work better with confirmation as the MKT is in a corrective state and will be probing lower looking for soft spots.  Work any BUY DIR and UP BREAKOUT strategies as any positive shift in momentum has the potential to be the start of the next leg higher.  DIR FADE strategies after the UP Breakout should use greater leverage.

Today's PRICE MAP Performance for TY

Wrap Up
- In a BULL TREND CORRECTION state, the market is vulnerable to a corrective sell off within the underlying bull market.  With that being said, the analyst has placed the R Level at the minor level below the DP, signalling traders that the opportunity is on the long side of the market above this level.  The market sold off to the R Level, respected this level, and then resumed the underlying bull trend.  Consistent with out market commentary for the day, we should look to accept DP REVERSAL signals in anticipation of a resumtion of the underlying bull trend.  The market gave us a BUY DP REVERSAL signal around 4:30 AM and followed through with a steady move up to the DIR.

BRITISH POUND

Today's MARKET STATE for BRITISH POUND: **NEUTRAL DIGESTION**

 

-The MKT has a slight negative bias in a difficult “choppy” trade.  On the SELL side DP BREAKOUT strategies are valid but should expect a laborious trade.  UP and UT1 FADE and REVERSAL strategies are recommended but profit should be taken at initial targets.  The probability is to the downside but is not a day to press it.

-On the BUY side avoid UP BREAKOUT strategies but rather FADE a negative reaction after a positive breakout signal at the DIR.  DP REVERSAL strategies are recommended over FADE strategies as “sloppy” trading conditions are expected.  Any DP FADE trades should get confirmation before executing.  Position management adjustments should be anticipated for all longs as sideways trading conditions can quickly erase profits.

Today's PRICE MAP Performance for BP

 

Wrap Up
- With an MC Value of -1 we have a slight negative bias on a NEUTRAL trading environment.  With the R Level at the minor target above the UP, the analyst has expanded the Critical Range and identified the minor level above the R Level to be the "breaking point" for the negative bias.  Consistant with out market commentary, we get a SELL UP REVERSAL strategy when the market fails to sustain its breakout from the UP.  Our market commentary tells us to take profits at our initial target, so profits should be realized at the DIR around 8:30 AM.

WHEAT

Today's MARKET STATE for WHEAT: **NEUTRAL DIGESTION**

-The MKT is in a sideways digestive position with a slight positive bias.

-On the SELL side avoid DP BREAKOUT strategies but rather FADE a positive reaction against the DIR after a negative breakdown signal.  UP and UT1 REVERSAL strategies are recommended over FADE strategies as “sloppy” trading conditions are expected.  Any UP FADE trades should get confirmation.

-On the BUY side UP BREAKOUT strategies are valid but should expect a laborious trade.  Work any position, selling into emotional surges and re-entering on any sharp pullbacks.  Expect a choppy trade and be aggressive on minimizing profit give-back.  DP and DT1 FADE and REVERSAL strategies are recommended.

Today's PRICE MAP Performance for W

Wrap Up
- Today in the WHEAT market, we had a NEUTRAL DIGESTION market state with a slight positive tone.  Since the analyst placed the R Level at the DIR, we know that today we are in a dynmaic market state and opportunity exists on both sides of the market.  In a NEU market state, our expectation is that trading should stay within the Critical Range so when we saw the breakdown from the DP around 8:00 AM below the R Level, we knew that this was an opportunity to execute a SELL DP BREAKOUT strategy that was in line with our sentiment bias.  In a neutral environment, position management should be tight as a choppy trading environment is expected.  Profits should have been realized at the DT1 around 10:30 AM.

JS Services Strategy Based Trading

Defining Market State, Structure, and Strategy is essential to becoming a successful trader. See how JS Services can help you reach your maximum potential!

The following web video provides the foundation to our Strategy Based Trading approach.

http://progressive.powerstream.net/008/00102/edu/interactive/js_services/strategy_based_trading/index.html

If you would like to sign up for a FREE TRIAL of JS Services click here.

If you have any questions, feel free to email us at: info@jsservices.com.

Good Trading!

S&P 500

Today's MARKET STATE for S&P 500: **NEUTRAL DIGESTION TRANSITION**

- 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 SP

 

Wrap Up
- Today the S&P 500 market performed to market expectations and followed through on the negative transitional signal.  The R Level at the UP represented the breaking point for the negative transitional signal.  With price action failing to break above this level, the negative signal remained in play and the opportunity for the session is to the downside.  The market sold off to the DP in the overnight session signaling to traders that the markets wanted to transition lower.  After finding support at the DP around 4:00 AM, the market rallied back up to our DIR giving us an opportunity to execute a SELL DIR FADE strategy from this level around 8:45 this morning.  this proved to be the trade of the day as the market sold off sharply, digesting for a minute at the DP before transitioning down to our next major level at the DT1.

BRITISH POUND

Today's MARKET STATE for BRITISH POUND: **NEUTRAL DIGESTION**

-Technically the MKT is “on the fence” with the potential to go in either direction or nowhere.  Pick your points and have no expectations, as the likelihood of this MKT trading sideways is high.

- On the SELL side BREAKOUT, FADE and REVERSAL strategies are valid, however profit and position risk management should be aggressive and anticipated.  The pivotal nature of the session does have the potential to be in the starting point for a new move.  However, the probability of any trend action is more likely to just be the MKT defining its new consolidation extreme.

- On the BUY side BREAKOUT, FADE and REVERSAL strategies are valid, however profit and risk management should be aggressive and anticipated.  The MKT is “on the fence” and does have the potential to be the beginning of a new trend move.  The probability of a new trend move is low.  However, any price trend action is more likely to just be the MKT defining its new consolidation extremes.

Today's PRICE MAP Performance for BP

Wrap Up
- Today in the British Pound, we have a NEUTRAL DIGESTION market state with an MC value of -2.  With the R Level at the UP, we have a confluence of signals telling us to accept sell signals below the R Level. Just before 2:00 AM we get an opportunity to execute a SELL UP FADE strategy from our R Level.  With the expectation that trading for the session will stay within the Critical Range, this is the highest risk/reward trade for the session.  The profit respected the R Level at the UP beautifully and sold off sharply throughout the morning session.  After digesting at the DIR around 6:00 AM, the market continued lower to the end of our Critical Range where it eventually found support at our DP.

DAX INDEX

Today's MARKET STATE for DAX INDEX: **NEUTRAL DIGESTION**

- The mkt IS in a sideway digestive position with a slight positive bias.
- On the SELL side avoid DP BREAKOUT strategies but rather FADE a positive reaction against the DIR after a negative breakdown signal  UP and UT1 REVERSAL strategies are recommended over FADE strategies as “sloppy” trading conditions are expected.  Any UP FADE trades should get confirmation first.
- On the BUY side UP BREAKOUT strategies are valid but should expect a laborious trade.  Work any position, selling into emotional surges and re-entering on any sharp pullbacks.  Expect a choppy trade and be aggressive on minimizing profit give-back.  DP and DT1 FADE and REVERSAL strategies are recommended.

Today's PRICE MAP Performance for DAX

Wrap Up
- Today in the DAX INDEX futures market, we had extremely choppy market action staying true to the NEUTRAL DIGESTION market state.  With an MC Value of +3, we know that there is a slight positive bias on the neutral market state, and we should look to accept buy signals ABOVE our R Level.  Around 2:00 AM, the market gives us our opportunity to enter the market with a BUY DP REVERSAL strategy as recommended by our market commentary.  Our expectation is for price action to stay within the Critical Range and position management should be tight.  The market rallied sharply up to the DIR at around 3:30 AM where it digested for the better part of the morning session.  After failing to penetrate the minor level at 7352.0 at 7:00 AM, the market began a rally that eventually made it up to the upper end of our expected trading range at the UP.

BRITISH POUND

Today's MARKET STATE for BRITISH POUND: **BULL TREND CORRECTION**

 

- The MKT has produced a negative signal against an underlying positive trend. On the SELL side accept UP FADE signals on the 1st press into the area only. REVERSAL strategies should only be done off the UP or the previous session high point and will immediately work if they are going to. Keep position and risk management tight on these traded. SELL DIR and DP BREAKOUT strategies are aggressive but do have the potential to be the start of a larger corrective turn. Keep risk management tight.

_ On the BUY side accept REVERSAL signals off all major inflection levels, expecting the underlying positive momentum to resume. DP FADE strategies will work better with confirmation as the MKT is in a corrective state and will be probing lower, looking for soft spots. Work any BUY DIR and UP BREAKOUT strategies as any positive shift in momentum has the potential to be the start of the next leg higher. DIR FADE strategies after the UP Breakout should use greater leverage.

Today's PRICE MAP Performance for BP

Wrap Up
Today in the BRITISH POUND futures market, our Critical Range helped define the trading range for traders.  In a BULL TREND CORRECTION market state, the market has generated a corrective signal against the underlying positive trend.  Any short position taken today should use strict position management as the underlying bull trend must be respected.  After the  Around 2:00 AM we get a SELL DIR BREAKOUT strategy that is in agreement with our R Level at the UP.  As stated earlier, the underlying bull trend of the market must be respected, and profits should be taken sooner rather than later.  After entering the trader at 2:00 AM, the market attempted a retest of the DIR and failed around 3:00 AM confirming our trade.  The market then broke sharply and sold off to the DP, where profits could have been realized.  By defining the expected trading range for the day, JS traders were able to capitalize on the corrective move in the British Pound.

WHEAT

Today's MARKET STATE for WHEAT: **NEUTRAL DIGESTION**
 

-The MKT is in a sideways digestive position with a slight positive bias.

- On the SELL side avoid DP BREAKOUT strategies but rather FADE a positive reaction against the DIR after a negative breakdown signal.  UP and UT1 REVERSAL strategies are recommended over FADE strategies as “sloppy” trading conditions are expected.  Any UP FADE trades should get confirmation first.

- On the BUY side UP BREAKOUT strategies are valid but should expect a laborious trade.  Work any position, selling into emotional surges and re-entering on any sharp pullbacks.  Expect a choppy trade and be aggressive on minimizing profit give-back.  DP and DT1 FADE and REVERSAL strategies are recommended.

Today's PRICE MAP Performance for W

 

Wrap Up
The Critical Range worked to perfection today in the DEC '12 WHEAT market.  With an MC Value of +3 and a NEUTRAL DIGESTION market state, our expectation is for a sideways trading environment within the Critical Range with a positive sentiment bias on the day.  Our market commentary tells us to accept BUY DP FADE strategies.  The placement of the R Level at the DP adds weight to this inflection point, and makes it the best opportunity for the day.  Right around 8:00 A.M. the market sells off to the DP and gives us an opportunity to execute our BUY DP FADE strategy.  The market respected the support at the DP and rallied sharply throguh our DIR all the way to the upper end of our Critical Range at the UP, where profits should have been realized.  Another example of how defining the structure of the market can help good traders achieve greatness.

EURO CURRENCY

Today's MARKET STATE for EURO CURRENCY: **BULL TREND DIGESTION**

 

-The MKT has a positive lean and will maintain this posture above the previous session low point.  On the SELL side accept FADE and REVERSAL signals at the UP and +c.  The underlying momentum is up, however short fast negative reactions are expected.  Keep position management and profit targets aggressive, as these trades are counter trend.  Avoid DP BREAKOT strategies.  Although the digestive posture points to opportunity on both sides, follow through on either is unlikely and less so to the downside.

On the BUY side accept FADE and REVERSAL strategies off the DP with the expectation that any test will likely contain a few starts and tops before a positive reaction.  DIR and UP BREAKOUT strategies should be initiated sooner (lower) than later (higher) as extended follow through potential is not in the forecast.  Have resting limits to exit and an aggressive position management plan as the digestive posture can quickly erase any unrealized gains.

Today's PRICE MAP Performance for EU

Wrap Up
Nice day in the EURO CURRENCY as the market performed to our expectations for a BULL TREND DIGESTION market state.  The R Level at the DP represents the sentiment bias for the day.  We are told to accept BUY DP REVERSAL signals and to expect a few "start and stops".  At 2:30 AM we are given our first BUY DP REVERSAL signal.  The market rallies to our minor level at 1.2957 and then drops back down to the DP where it finds support around 3:30.  After another rally that fell short of the previous, we have a sell off and a second BUY DP REVERSAL signal at 4:30.  From here the market begins to build positive structure, making higher move highs and higher move lows.  Due to the digestive market state, we should exercise tight position management, and profits could have been taken at the DIR at 8:00 A.M.