-Technically the MKT has produced a big negative signal
against a positive trend. On the SELL
side avoid UP and DIR FADE strategies until after the previous session low
point or major support level has been broken to confirm a negative shift. UP REVERSAL strategies should be avoided as
any positive signal is more likely an indication that the underlying trend is
going to resume. DP SELL BREAKOUT
strategies can be profitable but they are aggressive and should look to take
profits and potentially REVERSE long at support targets.
- On the BUY side accept BREAKOUT, FADE and REVERSAL
strategies off major inflection points with the expectation that the positive
momentum is going to resume. UP BREAKOUT
strategies can risk a little more if current events confirm positive
posture. If not, a better approach would
be to FADE a negative “squeeze” reaction after a positive breakout signal at
the DIR as the neutral technical position can keep the trend sideways.
Today's PRICE MAP Performance for TY
- Today the 10YR T-NOTES performed to market expectations. The market produced a negative signal with a MC Value of -2 in an underlying POSITIVE trend. The R Level at the DIR defines the level above which traders should be looking for the positive trend to resume. The market respected the R Level just before 3 A.M. and rallied up to the minor level within the Critical Range. The market then gave us the negative "squeeze" that our Market State told us to look for and gave the trader a perfect opportunity to execute a BUY DIR FADE strategy at the R Level around 6 A.M. From here, price action continued higher, crossing the UP, and almost achieving the UT1.
