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