WHEAT

Today's MARKET STATE for WHEAT: **NEUTRAL DIGESTION**

- The MKT is in a sideways digestive position with a slight positive bias.
- On the SELL side avoid DP BREAKOUT strategies but rather FADE a positive reaction against the DIR after a negative breakdown signal. UP and UT1 REVERSAL strategies are recommended over FADE strategies as "sloppy" trading conditions are expected. Any UP FADE trades should get confirmation first.
- On the BUY side UP BREAKOUT strategies are valid but should expect a laborious trade. Work any position, selling into emotional surges and re-entering on any sharp pullbacks. Expect a choppy trade and be aggressive on minimizing profit give-back. DP and DT1 FADE and REVERSAL strategies are recommended.

Today's PRICE MAP Performance for W

 

Wrap Up
- With a MC Value of +2 the WHEAT market has a slight positive tone in a NEUTRAL Primary Technical State.  With the R Level being placed at the minor level below the DP the analyst is "expanding the Critical Range".  If the DP is breached, the breaking point for the positive Sentiment for the session is at the R Level.  The market sold off sharply from the DIR, took out the DP and eventually found Support at the R Level.  This presented traders with an opportunity to get long from the R with the expectation that market would retrace back into the Critical Range.  As it played out, the low for the day was right at our R Level, allowing traders to enter long the market at the optimal entry point and ride the trade all the way up to the DIR, where profits could have been realized around 11:30 AM.  By identifying the market state expectations as well as the key inflection point for the session, traders were able to successfully navigate the choppy price action in the WHEAT futures market.

NASDAQ 100

Today's MARKET STATE for NASDAQ 100: **NEUTRAL DIGESTION TRANSITION**
 

- MKT sentiment is leaning negative and will outweigh the buy side if the integrity of the previous session high remains intact.

- On the SELL side accept BREAKOUT, FADE and REVERSAL strategies with the expectation that the current negative transition will continue. Keep aggressive position management on DP 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 positive reactions after a negative signal to FADE the DIR.

- On the BUY side avoid DP FADE strategies until after the previous session high point has been taken out. Until then, a better opportunity will be a DP REVERSAL strategy. The idea is that the transition trade is over and a positive shift back into a NEUTRAL DIGESTION is expected. UP BREAKOUT strategies can be profitable but they are aggressive. Risk less, go for more.

Today's PRICE MAP Performance for ND

 

Wrap Up
- Today in the NASDAQ 100 market, we had a NEUTRAL DIGESTION TRANSITION market state with the possibility of the market transitioning lower.  Since the market is in a NEUTRAL Primary Technical State, traders should key off of the Critical Range (UP - DP) as the expected trading range.  Our market commentary tells us that SELL FADE and REVERSAL strategies are valid; however, risk management should be kept tight.  At 9 AM the market gave us a "head fake" above our expected level of Resistance at the UP, then quickly retraced back into the Critical Range.  This provided traders with an opportunity to execute a SELL UP REVERSAL strategy, taking profits at the DIR.  The market again tested the UP, failing to produce any upside follow-through.  This gave us another opportunity to execute a SELL UP REVERSAL trade at 10:45 AM, taking profits at the DIR around 2:15 PM.

SWISS FRANC

Today's MARKET STATE for SWISS FRANC: **NEUTRAL DIGESTION**
 

-Technically the MKT is “on the fence” with the potential to go in either direction or nowhere. Pick you points and have no expectations as the likelihood of this MKT trading sideways is high.

-On the SELL side BREAKOUT, FADE and REVERSAL strategies are valid, however profit and position risk management should be aggressive and anticipated.  The pivotal nature of the session does have the potential to be the starting point for a new move.  However, the probability of any trend action is more likely to just be the MKT defining its new consolidation extreme.

-On the BUY side BREAKOUT, FADE and REVERSAL strategies are valid, however profit and position risk management should be aggressive and anticipated.  The MKT is “on the fence” and does have the potential to be the beginning of a new trend move.  The probability of a new trend move is low.  However, any price trend action is more likely to just be the MKT defining its new consolidation extremes.

Today's PRICE MAP Performance for SF

Wrap Up
- Today in the SWISS FRANC market, we had an MCV of -2 producing a NEUTRAL DIGESTION Market State.  Although there was a slight negative tone reflected in the MCV, the analyst placed the R Level at the DP, indicating to traders that above this level, the opportunity was on the long side of the market.  After flirting with the UP from 3 am - 8 am, the market finally gave us the BUY UP BREAKOUT strategy that was in-line with our sentiment bias.  Our expectation for a Critical Range breakout strategy is two APMD (Average PriceMap Distances) making our target the UT2.  The market wasted little time, as it rallied sharply, surpassing the UT1, and ultimately trading within a few tics of the UT2. 

EURO BOBL

Today's MARKET STATE for EURO BOBL: **BEAR TREND ACCELERATION**
 

-Technically the MKT is on edge and flirting with a release.  The MKT has produced a big negative signal and any positive corrective action is expected to be short-lived.  Any held strength is a sign that the trade will turn digestive.

-On the SELL side accept FADE, REVERSAL and BREAKOUT strategies below the previous session’s high point.  DIR and DP BREAKOUT may need to be “worked” as the MKT is on edge and will be emotional, producing some starts and stops before it drops.

-On the BUY side avoid REVERSAL strategies off major support levels as these signals are more likely short squeeze rallies.  BREAKOUT strategies above the previous session high are a long shot, so risk less and go for more.  Any DIR or DP FADE should have confirmation and is not recommended if the integrity of the previous session high is intact.

Today's PRICE MAP Performance for BOBL

 

Wrap Up
- Today was a great day for our traders in the EURO BOBL market as the market performed to expectations in the BEAR TREND ACCELERATION market state.  In a market state such as the one we had today, with the R Level above the Critical Range, traders should look to get short the market aggressively from major inflection points below the R Level.  The market found support on two separate occasions during the overnight session, then, at 7:00 AM, gave us a SELL DIR BREAKOUT strategy.  This trade turned profitable immediately, as the market sold off sharply, taking out the DP, eventually finding support at the DT1, where profits could have been realized.  By identifying the signature state of the market along with the Sentiment Bias for the session, JS Traders were able to capitalize on the strong sell-off in the EURO BOBL.