- 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. Avoid DP FADE BUYS as the negative trend remains in force.
Today's PRICE MAP Performance for DA
Wrap Up
- With an MC Value of -5, our expectation is for a follow through of the BEAR TREND signal in the AUSTRALIAN DOLLAR. For our overnight traders, a SELL R FADE opportunity presented itself just after midnight. The MOVING AVERAGE CROSS occurred at 1 am CT and remained valid throughout the entire session as the market continued to build NEGATIVE STRUCTURE (lower lows and lower highs) throughout the day. Just after 6 am CT, the market gave us a SELL DP BREAKOUT opportunity with an expected move down to the DT 2. The market sold of from 8-9:30, stabilized for a bit at the DT 1, and then continued down to our profit target at the DT 2. By using the Moving Average cross and the markets ability to maintain negative structure, traders were able to net serious profits today.
