Sunday, November 15, 2009

EUREX BUND - Neutral Negative Shift

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.

Today I'm going to go over a NEUTRAL NEGATIVE SHIFT technical state. A MKT in this position has no underlying directional bias and has produced a negative signal within a sideways digestive trade. Expectations should be for the negative signal to remain in force below the session inflection pivot targeting the digestive support extreme.

NEUTRAL NEGATIVE SHIFT

NOV 16, 2009


EUREX BUND Z'09 - 12161 Inflection Pivot


DEC'09 EUREX BUND - Technically the MKT is in a NEUTRAL DIGESTIVE position with a negative bias. Opportunity exists on both sides of the MKT but selling strength is the better opportunity.

On the SELL side accept FADE, BREAKOUT and REVERSAL strategies off major inflection points. SELL BREAKOUT strategies should just "go" and not look back, so keep risk parameters tight. FADE strategies after a negative breakdown signal are good opportunities as well but expectation should be for the MKT to quickly move back under the failed support. If the trade just "hangs around" is more likely a signal that more digestive action is coming and a retest of resistance should be expected. Be more aggressive with FADE and REVERSAL strategies at or against the previous session high point targeting the opposing digestive support. Above the previous session high point enterying after the 2nd or 3rd press into an area is recomended over stepping in front of the initial challenge.

On the BUY side BREAKOUT strategies are aggressive and should be entered sooner [lower] than later [higher]. Expectations should be for the MKT to make its move early in the session and not look back, holding strucutre most of the day. If the MKT digests prior to making a positive move it is more likely a short squeeze to FADE. BUY FADE strategies are aggressive and if they are going to work should do so on the initial test of support. Repeated tests or "confirmation" are more likely to give way to a lower trade. BUY REVERSAL strategies are recommended off the session initial major support only, as the MKT is vulnerable to a negative trend shift. The probability is to the downside today so don't get stubborn buying breaks.

Note: The MKT is in neutral so "sloppy" conditions with "false signals" should be anticipated. Have a plan for any squeeze. Don't get stubborn however if the MKT starts to hold structure and gets into trend mode as the contract may just be expanding its digestive parameters producing a one way trade into the close and new extreme.

For an overview on ENTRY strategies please review the following link
http://www.jsservices.com/education/sbt/CME_EntryStrategies5min.wmv

Good trading.

JS

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.

Thursday, November 12, 2009

EuroFX Z'09 - Negative Signal needs confirmation

The DEC'09 EUROFX posted a big negative signal but will need to trade under the 14810 Inflection Pivot to confirm a sentiment shift. Key off this price point for the session bias. A failure here and expectations are for further losses targeting 14630 on any downside follow through. A false breakdown that cannot sustain a failure from 14810 is expected to produce a nice positive REVERSAL signal with 14978 targeted.
If we do not get a play into the 14810 level expectations will be for a difficult trading environment with 14978 and 15062 the high points for a new digestive trade.

Good trading.

JS

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.

Wednesday, November 11, 2009

BULL TREND ACCELERATION Signals

The US Equity Indices continued to climb higher but may be in for a reality check today. The Nasdaq100 is pressing into the extreme but the MidCap400, SOX, XBD and the DAX have produced fresh positive signals. These along with a few other markets are technically "in play" after producing a BULL TREND ACCELERATION signals.


The following markets have produced a positive signal and will continue to work an aggressive buy posture above their session Inflection Pivot.

BULL TREND ACCELERATION

NOVEMBER 12, 2009 - MKT - Inflection Pivot

MidCap400 Z'09 - 690.30

DAX Z'09 - 5611

SOX - Semiconductor Sector Index - 31300

XBD - Broker Dealer Index - 11686

Japanese Yen Z'09 - 9432

EURGBP - FOREX - 8995

Soybeans F'10 - 957-6

Draw a line on your intra-day chart at these levels. Look for opportunity in the direction of the Inflection Pivot price bias. Executing at or near these price points will provide the best risk / reward. If the MKT cannot follow through on its signal and produces a REVERSAL signal at its Inflection Pivot, a sharp counter signal move should be expected.

Good trading.

JS


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.

Tuesday, November 10, 2009

BULL TREND ACCELERATION SIGNALS

The US Equity Indices are on fire producing another positive technical signal adding fuel to the fire. These along with a few other markets are technically "in play". Today we continue to track BULL TREND ACCELERATION signals.

The following markets have produced a positive signal and will continue to work an aggressive buy posture above their session Inflection Pivot.

BULL TREND ACCELERATION

NOVEMBER 11, 2009

MKT - Inflection Pivot
SP500 Z'09 - 1069.25
ND100 Z'09 - 1752.25
Dow Futures Z'09 - 10139
Canadian$ Z'09 - 9432
Mexican Peso z'09 - 7455
BOBL Z'09 - 115.46

Draw a line on your intra-day chart at these levels. Look for opportunity in the direction of the Inflection Pivot price bias. Executing at or near these price points will provide the best risk / reward. If the MKT cannot follow through on its signal and produces a REVERSAL signal at its Inflection Pivot, a sharp counter signal move should be expected.

Good trading.

JS

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.

Monday, November 9, 2009

BIG POSITIVE -BULL TREND ACCELERATION SIGNALS

Today was positive all around with not MKTs that we are covering producing a negative signal. We did however get more than a few positive signals. Below are MKTs that have produced a major positive signal are in a BULL TREND ACCELERATION technical state. Expectation is that the signal is going to follow through as long as the signal is in line with the MKTs Inflection Pivot. So BULL TREND ACCELERATION should hold above their session Inflection Pivot if the signal is going to remain valid.



The strategies presented are in line with JS Services Strategy Based Trading approach, which looks to align the markets current technical state with your applied strategy criteria.

STRATEGY BASED TRADING Review http://progressive.powerstream.net/008/00102/edu/interactive/js_services/strategy_based_trading/index.html
For November 10, 2009

BULL TREND ACCELERATION
The markets below have produced a major positive signal which should follow through today if valid. Key off the session Inflection Pivot for an indication of the market structure and confirmation that the aggressive positive signal is in play.

Equity Indices Dec'09 Inflection Pivot
DAX - 5546

EuroSTOXX - 2799

FTSE 100 - 513.20
MidCap400 - 678.10

ETF

XAL -24.85
BTK - 889.65
DJU - 372
XOI - 1090
OSX - 197.00

Interest Rate
BOBL - 115.33

Energy
Heating Oil - 20407

FOREX
AUDJPY - 82.93

Draw a line on your intra-day chart at these levels. Look for opportunity in the direction of the price bias. Executing at or near these price points will provide the best risk / reward. If the MKT cannot follow through on its signal and produces a REVERSAL signal at its Inflection Pivot, a sharp counter signal move should be expected.

Good trading.

JS

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.

Sunday, November 8, 2009

TREND ACCELERATION SIGNALS for NOV 9, 2009

Today I'm going to show MKTs that are in a trend acceleration state or a BULL TREND or BEAR TREND ACCELERATION. MKTs that have produced a major negative signal are in a BEAR TREND ACCELERATION state and MKTs that have produced a major positive signal are in a BULL TREND ACCELERATION technical state. Both states are similar in the the expectation is that the signal is going to follow through as long as the signal is in line with the MKTs Inflection Pivot. So BULL TREND ACCELERATION should hold above and BEAR TREND ACCELERATION markets should hold below their session Inflection Pivots.



For November 9, 2009

BULL TREND ACCELERATION
The markets below have produced a major positive signal which should follow through today if valid. Key off the session Inflection Pivot for an indication of the market structure and confirmation that the aggressive positive signal is in play.


Currencies Futures Dec'09

JAPANESE YEN - 11038
AUSTRALIAN DOLLAR - 9102

Interest Rates Dec'09
US 10YR T-NOTE - 118-160

EQUITY ETF
SPY - SP500 Depository Receipts - 107.53
QQQ - NASDAQ 100 Tracking Stock- 41.97
RLX - Retail Sector Index - 389.00
IIX - Inter@ctive Internet Sector Index - 217.00

BEAR TREND ACCELERATION
The markets below have produced a major negative signal which should follow through today if valid. Key off the session Inflection Pivot for an indication of the market structure and confirmation that the aggressive negative momentum is in play.

Interest Rate Dec'09
BUND - 12089


Commodities Jan'10
SOYBEANS - 975-4

Draw a line on your intra-day chart at these levels. Look for opportunity in the direction of the price bias. Executing at or near these price points will provide the best risk / reward. If the MKT cannot follow through on its signal and produces a REVERSAL signal at its Inflection Pivot, a sharp counter signal move should be expected.

Good trading.

JS

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.

Thursday, November 5, 2009

BEAR TREND ACCELERATION REVIEW - SWISS FRANC Z'09

NOV 4 2009 REVIEW
On Nov 4th 2009 the Swiss Franc Dec'09 futures contract was in a BEAR TREND ACCELERATION technical state.

The Inflection Pivot that defined that technical state was defined as 9767.

Expectations are that if the negative signal is going to follow through the MKT will remain below the price point. A rise above this price and sentiment shifts.

A BEAR TREND ACCELERATION technical state is an excited state. The MKT is fearful, almost in a panic. Any positive turn out of that state will be a big “relief” and buyers will scramble to “rebalance” sometime sparking a sharp advance.

This is what played on in the SWISS FRANC Z’09 yesterday. The MKT could not follow through on its technical signal and after a breach in the negative structure a sharp rally was produced.

The Inflection Pivot defines structure to the current technical state. In BEAR TREND ACCELERATION it is the turning point from “aggressive sell” to “buy”. The market produced a negative signal. The signal was false and a counter positive reaction from the false negative signal should be expected.

This is the power of strategy based trading, aligning your expectations with the MKTs current technical state. Your expectation in a BEAR TREND ACCELERATION technical state is that the MKT is going to “fall out of bed”. If this does not play out and the signal is “invalid” a counter positive reaction should be expected. The price point that defines this sentiment shift is what I call the Inflection Pivot.

Hope this helps.

Good trading.

JS

If you would like to receive JS Services Inflection Pvot analysis as a chart overlay like below please contact me at info@jsservices.com. Sign up for a Complimentary FREE Trial.
SWISS FRANC Z'09 Price Map Chart Overlay Nov 4, 2009 performance


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