- 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 today 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.
Wrap Up
- Today in the 5-YR TREASURY NOTES, we had a NEUTRAL DIGESTION Market State with the R Level just above the UP. With a NEGATIVE bias and the R Level above the UP, the analyst is reiterating the fact that the highest probability trade today is on the SHORT side of the market. A little before 8 AM, we are given the SELL DP BREAKOUT strategy that should have been executed. Although the Market State warns that this could be a laborious trade, the price moved down to the DT1 with relative ease, and gave the trader an opportunity to realize profits toward the end of the trading session.
