WHEAT N'10 - SENTIMENT SHIFT

Technically the MKT is in a BEAR TREND ACCELERATION and flirting with the lower extreme. The MKT has produced a big negative signal and any positive corrective action is expected to be short lived with only one upside "stop sweep" if the negative moemtnum is going to play out. Any held strength and repeated probe higher is a sign that the trade will turn digestive. This does not take away from the negative bias but does limit the profit potential for any new sales in the session.

Key off the 495-6 Inflection Pivot as the high point fo rany corrective squeeze. Sell strength below here.

On the SELL side accept FADE, REVERSAL and BREAKOUT strategies below the previous sessions high point and against 495-6. BREAKOUT strategies below 476-2 may need to be "worked" as the MKT is on edge and will be emotional, producing some starts and stops before it drops. FADE strategies are recommended over REVERSAL strategies against 489-2 and 495-26as the MKT is expected to hold lower structure and any momentum shift should be considered a potential positive corrective turn.

On the BUY side avoid REVERSAL strategies off major support levels as these signals are more likely short squeeze rallies and opportunities to SELL into and FADE. BREAKOUT strategies above 489-2 above the previous session high are a long shot, so risk less and go for more. Any BUY FADE off the 476-2 support pivot should have confirmation and are not recommended if the integrity of the previous session high is intact. After a break in the negative structure confirmed support levels can be used for short term reactions using aggressive position management.

Note: The MKT is on edge and is vulnerable to a big drop. If the previous session high is intact its just a matter of time before the sellers try to overwhelm the MKT. Look for excuses to get short. If the previous session high is breached opportunity will be on both sides of the MKT, however the bias still rests with the Bears.

JS

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WHEAT K'10 - NEGATIVE SIGNAL IN PLAY BELOW 468-2

Technically the MKT is in a BEAR TREND and has produced a negative signal. The MKT is vulnerable and all sell signals should be considered below the 468-2 Inflection Pivot.

On the SELL side accept all BREAKOUT, FADE and REVERSAL signals. If the MKT produces a BREAKOUT signal below the 460-6 support pivot early in the session it should just "go" and not look back. Beware of any break in early negative structure, as a corrective rally up to resistance is a likely scenario. Be selective and wait for an exhaustive signal to re-enter to avoid selling the corrective rally all the way up to your "ideal" sell points but with no confidence left or dry powder. Practice good size management on this move accepting sell signals but leveraging up at the resistance turning points. Anticipate a price "zone" around a major resistance point to FADE at 468-2 and the 475-6 resistance pivot. Have a plan and be ready. If your stop gets hit and the MKT does not immediately follow through, consider re-entering, even doubling up if there is structure to define low risk. Follow any corrective rise with a REVERSAL strategy. Expectations are for the negative signal to follow through even if it does in the last hour.

On the BUY side REVERSAL strategies can be executed off the 460-6 and 445-6 support levels but preferably after an emotional sell off early in the session. This is an aggressive strategy and any profits should be realized at the previous support failure points. Expectations should be for an immediate "V" bottom turn with the MKT quickly moving away from the area or a gradual rise with higher lows after a lower exhaustive signal. Avoid FADE BUYS off 460-6 even with confirmation, as this is more likely a plateau for a BREAKOUT SELL strategy. BUY BREAKOUT strategies above 468-2 and 475-6 are not recommended but do have a better chance of succeeding than a FADE.

Note: The MKT has produced a negative signal and should follow through with authority from the get go if it is serious. If not expect some starts and stops. Be patient and wait for opportunity. As soon as the MKT starts to look "good", its time dial in your sell strategies, especially if the integrity of the previous session high point remains intact. Above the previous session high point and all negative bets are off.

JS

Join our "LIVE" TRADE ROOM and learn JS Services Strategy Based Trading approach using CLEARBOX automated strategies! For more information please contact me at info@jsservices.com. You can also visit http://www.jsservices.com/ and sign up for a Complimentary FREE Trial.

WHEAT May'10 - Corrective Signal in Play

Technically the MKT is in a NEUTRAL CORRECTIVE state producing a big negative signal against a positive trend. Opportunity exists on both sides of the MKT, however the negative signal wilol maintain the controls below the 517-2 Inflection Pivot.

On the SELL side avoid FADE strategies Against 509-6 and 517-2 until after the previous session low point has been broken to confirm a negative shift in momentum. REVERSAL strategies should be avoided as any positive signal is more likely an indication that the underlying trend is going to resume. SELL BREAKOUT strategies below 494-6 can be profitable but they are aggressive and should look to take profits and potentially REVERSE long at the 487-2 and 479-6 support targets. The trade is counter trend so avoid any negative commitments.

On the BUY side accept BREAKOUT, FADE and REVERSAL strategies off major inflection points with the expectation that the positive momentum is going to resume. REVERSAL strategies are recommended over a FADE strategies at the 494-6 support pivot, which should have at least 1 if not 2 challenges to the support integrity before executing a long off it. BREAKOUT strategies above 509-6 and 517-2 can risk a little more if current events and other MKTs of confluence confirm a positive posture. If not a better approach would be to FADE a negative "squeeze" reaction after a positive breakout signal off the 502-2 Directional as the neutral technical position can keep the trend sideways.

Note: The MKT has produced a big technical signal against the current trend. Be aware that the negative action may be a 1-day event with the positive trend quickly re-establishing itself. If the MKT is really going to turn it should remain hard pressed and provide little or no relief.

JS

This post supports the Strategy Based Trading, which is a methodology that focuses on the applied strategy verses a specific market. The approach looks to align strategies with markets whose current technical behavior matches the strategies criteria. Please review the following CME sponsored tutorial for a complete overview of this approach.

STRATEGY BASED TRADING Review http://progressive.powerstream.net/008/00102/edu/interactive/js_services/strategy_based_trading/index.html

For more information please contact me at info@jsservices.com. You can also visit http://www.jsservices.com/.The Inflection Pivot levels are available as a chart overlay on the following platforms; Ninja trader, Strategy Runner and eSignal. Sign up for a Complimentary FREE Trial.

WHEAT Z'09 - BEAR TREND CORRECTION

The DEC '09 WHEAT contract produced a counter trend signal and may be set for a short term shift in sentiment. Key off the 460-4 Inflection Pivot for an indication of the session bias. If yesterday's positive signal is going to have any meaning it will violate this price point and not look back, targeting 477-4 on the move. Although the BEAR TREND CORRECTION signal is expected to influence the MKT for the next couple days a reaction should be expected.

Trading below 460-4 and the signal is more NEUTRAL than positive with 443-4 the digestive low point for any sideways session. A break under the 443-4 support pivot and the BEAR TREND will look to re-establish itself targeting 426-4 on the next drop. 409-4 is the lower extreme for any emotional release.

MKTs in the BEAR TREND CORRECTIVE technical state will typically have sharp corrective rallies against the underlying negative momentum. Today the MKT will need to overcome the 460-4 Inflection Pivot to confirm a shift into this technical state. The 460-4 Inflection Pivot is the price point that defines the session bias and today it also defines the point where the BEAR TREND losses its grip for a corrective rise. Below 460-4 don't believe the hype, this contract remains an accident waiting to happen.

JS

Strategy Based Trading is a methodology that focuses on the applied strategy verses a specific market and looks to align strategies with markets whose current technical behavior matches the strategies criteria.Please review the following CME sponsored tutorial for a complete overview of this approach.

STRATEGY BASED TRADING Review http://progressive.powerstream.net/008/00102/edu/interactive/js_services/strategy_based_trading/index.html

For more information please contact me at info@jsservices.com. You can also visit http://www.jsservices.com/.The Inflection Pivot levels are available as a chart overlay on the following platforms; Ninja trader, Strategy Runner and eSignal. Sign up for a Complimentary FREE Trial.