- The MKT has a soft tone against an underlying positive trend. On the SELL side accept UP FADE signals on the 1st or 2nd 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 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 YM
- Today in the DJI FUTURES INDEX we had a MC Value of +2 and a BULL TREND CORRECTION Market State. This state tells us that the market has produced a corrective signal; however, the underlying trend is positive and must be respected. With the R Level at the DIR, a breach above this level has the potential to be the start of the next move higher. Around 1 A.M. the market tested the DIR in a tight digestive zone, after retreating briefly, the BUY DIR BREAKOUT signal was given to get long the market just after 1:30. The trade wasted no time in advancing up through the minor level, above which the market digested for the greater portion of the morning session. The minor level held support 4 times throughout the morning session, until finally, after testing the UP 3 times, the market broke out of the Critical Range just after 8:30 A.M. After rallying up to the next minor level at 13324, the market paused to take a breath, and eventually made it all the way up around 13350. Although our profit target at the UT1 was not attained, stops should have been tightened on the way up, and if a trader hadn't closed the position around 13350, profit give-back should have been minimized by tightened stops on the trade.
