- 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 DSX
Wrap Up
- With an MC Value of -3 there is a negative tone to the market in the EURO STOXX 50 today. The TRANSITION signal is in play below the R Level so any break in structure below the R Level is expected to produce a new negative move. If the market remains above this level, a digestive trade within the Critical Range is expected. As the market approached the expected level of RESISTANCE around 9:30 am CT, there was a BEARISH DIVERGENCE signal in our momentum oscillator, warning us of the underlying weakness of the move. This allowed traders to short the market from our key level of resistance and take profits on the sell off at the DIR.
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