- Technically the MKT has the potential for a positive 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 SELL side avoid UP and DIR FADE 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 TF
- The E-MINI RUSSELL 2000 Market Strategy for today's session worked perfectly. In a NEUTRAL DIGESTION TRANSITION Market State, the market has the potential for a positive move today. Our market commentary tells us that on the BUY side, we should wait for a negative reaction after a positive signal to FADE the DIR. In the early session around 2:30 A.M. price action breaks out of the Critical Range by penetrating the UP. Price continues higher and then eventually there is a sharp sell off around 8:30 A.M. This is the negative reaction after the positive breakout signal that we are looking for to FADE the DIR. Since the analyst has put the R Level at the DIR, this reinforces the idea that the DIR should serve as major Support and traders should look to execute a BUY DIR FADE from this level. Price action came all the way down to the DIR, respected the level perfectly, and then rebounded back to the Minor level at 807.90. After digesting for a bit, the market began another advance that took price through the UP. Due to the Neutral Market Structure, position management should be tight. After the rally failed to make a new intraday high around 10:30 A.M., the trader should have realized this as a sign of weakness, and closed their long position to minimize profit giveback.
