-Technically the MKT has produced a positive signal against
a negative trend. On the SELL side
accept BREAKOUT, FADE and REVERSAL strategies off major inflection points with
the expectation that the negative momentum is going to resume. UP REVERSAL strategies are recommended over
FADE, which should have at least 1 if not 2 challenges to its integrity before
executing a short sale against it. A
better approach to a straight DP BREAKOUT strategy is to FADE a positive “squeeze”
reaction after a negative breakdown signal against the DIR.
-On the BUY side avoid DIR and DP FADE strategies until
after the previous session high point or major resistance has been taken out to
confirm a break in momentum. Until then,
a better opportunity will be a DP REVERSAL strategy. UP BUY BREAKOUT strategies can be profitable
but they are aggressive and should look to take profits and potentially REVERSE
short at resistance targets.
Today's PRICE MAP Performance for TY
- With an MC shift of +4 the market has produced a NEUTRAL POSITIVE SHIFT. With the R Level at the DP, we know to accept BUY strategies above this level. As indicated by our market commentary, BUY UP REVERSAL strategies are aggressive and should look to take profits and REVERSE at our first resistance target (the UT1). As today's session played out, the BUY UP BREAKOUT strategy could have been executed in the early session, taking profits at the initial resistance target of the UT1 at 9 A.M. From here, our commentary tells us to reverse and go short the market at our initial resistance target (UT1). By getting short the market from this level, we were able to capture the move back down to the UP and cover our short position at the UP at 11:30.
