-The MKT is in a soft neutral position. On the SELL side UP REVERSAL and FADE
strategies with confirmation will be a better option over downside BREAKOUTS,
as selling into corrective reactions is the best position. The MKT remains negative but be patient as to
not get caught FADING a corrective rise all the way up. DP BREAKOUT strategies are valid
opportunities but look to take profits on emotional drops versus getting trail
stopped on corrective pull backs.
- On the BUY side DIR and UP BREAKOUT strategies should be
looked at as a “one-shot” deal. Either
the MKT railroads higher in a steady climb or it’s just a head fake to
sell. If you get on a steady advance,
ride it until structure is broken. DP
and DT1 REVERSAL strategies are valid, as the neutral tone has the potential to
produce false signals in either direction.
Avid DP FADE BUYS as the negative trend remains in force.
Today's PRICE MAP Performance for GC
- With an MC Value of -5, the GOLD futures market followed through on the BEAR TREND market state signal. The break in structure at the DP around 10:30 allowed traders to get short the market with a SELL DP BREAKOUT strategy. With the market transitioning lower, we usually expect a move of 2 APMD, in this case, to the DT2. The market stabilized at the DT1 for a brief moment around 11:30 before continuing all the way down to our profit objective at the DT2.
