EURO-BOBL

Today's MARKET STATE for EURO-BOBL: **NEUTRAL DIGESTION**

- The MKT has a slight negative bias in a difficult "choppy" trade. On the SELL side DP BREAKOUT strategies are valid but should expect a laborious trade.  UP and UT1 FADE and REVERSAL strategies are recommended but profit should be taken at initial targets. The probability is to the downside today but is not a day to press it.
- On the BUY side avoid UP BREAKOUT strategies but rather FADE a negative reaction after a positive breakout signal at the DIR. DP REVERSAL strategies are recommended over FADE strategies as "sloppy" trading conditions are expected. Any DP FADE trades should get confirmation before executing. Position management adjustments should be anticipated for all longs as sideways trading conditions can quickly erase profits.

Today's PRICE MAP Performance for BOBL

 

Wrap Up
- Today in the EURO-BOBL futures market, traders had a wonderful opportunity for some serious profits as the market performed to our expectations.  In a NEUTRAL DIGESTION market state with an MC Value of -2, the market has produced a slight negative bias in an otherwise neutral market.  However, the analyst has put the R Level (Sentiment Bias) at the DP telling the trader that any reaction down to this level, should be bought as the analyst expects the Critical Range to hold structure, and the price to reverse course, and rally from the R Level.  Our market commentary warns of a "sloppy" trading environment, and advises that traders get confirmation before executing a BUY DP FADE strategy.  The market churned around the DIR during the early session, eventually sold off to the DP, and respected this level perfectly.  The market bounced off this level and made another attempt at the DP at 4:00 A.M. This attempt failed to break below 126.80, making a HIGHER LOW and giving us confirmation for our BUY DP FADE trade.  The market immediately rallied up to the DIR, digested for a bit, and then continued higher.  Around 7:45 A.M., the market spiked and took prices all the way through the UP and eventually made it up to the UT1, where profits should have been realized, if they hadn't been earlier.  Today's performance in the EURO-BOBL serves as another illustration of the trading power of JS Services Price Map.

EURO CURRENCY

Today's MARKET STATE for EURO CURRENCY: **NEUTRAL DIGESTION**

- Technically the MKT is in neutral but has produced a positive signal. On the SELL side DIR and DP BREAKOUT strategies are aggressive. If the MKT digests prior to making a negative move, it is more likely a squeeze on the longs to FADE.  UP SELL FADE strategies are aggressive as well and if they are going to work, should do so on the initial test of resistance. SELL REVERSAL strategies are recommended off the UP only. The probability is to the upside today so don't get stubborn selling strength.
- On the BUY side accept FADE, BREAKOUT and REVERSAL strategies off major inflection points. UP BUY BREAKOUT strategies should just "go" and not look back, so keep risk parameters tight. DIR FADE strategies after a positive breakout signal are good opportunities as well, but expectation should be for the MKT to quickly move back above violated resistance. If the trade just "hangs around", it is likely a signal that more digestive action is coming and a retest of support should be expected.

Today's PRICE MAP Performance for EU

Wrap Up
- The EURO CURRENCY had produced a positive signal for today's trading session and the probability is to the upside.  Our market commentary tells us that if a BUY UP BREAKOUT trade presents itself, our expectation is for it to just "go" and not look back.  After respecting the UP around 1:45 A.M. the market makes a second attempt at the UP, this time trading through it and giving us our BUY UP BREAKOUT strategy.  Our expectation is for this trade to just "go" and indeed it did.  The market rallied sharply up to the minor level, digested for a bit between the UT1 and minor level, and then eventually continued to move higher.  The "second wind" rally took the market all the way up to our price target, the UT2, and gave traders the opportunity to take profits on their long positions.

EURO STOXX 50

Today's MARKET STATE for EURO STOXX 50: **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 DSX

Wrap Up
- The market has produced a positive signal in a NEUTRAL market state and the probability for the day is to the upside.  By placing the R Level at the minor level below the DP, the analyst is "expanding" the Critical Range by saying that any reaction can go as far down as the R Level, before it is expected to rally.  Our market commentary tells us that a BUY DP and DT1 FADE and REVERSAL strategies are recommended today, and around 9:30 A.M. we are presented an opportunity to execute a BUY R REVERSAL strategy.  Since the R Level is at a minor level between the DP and DT1, this strategy is in agreement with out expectation for the day, and also illustrates the importance of the R Level.  After selling off throughout the early session, EURO STOXX 50 found support at the R Level, and quickly began to rally.  Since the market is in a NEUTRAL DIGESTION state, we must respect the sideways tone of the market, and be aggressive with our position management.  Although the DIR would have been an ambitious target to attain, the market stabilized at the minor level between the DP and DIR presenting the trader with a good time to exit the position and realize a solid profit.

AUSTRALIAN DOLLAR

Today's MARKET STATE for AUSTRALIAN DOLLAR: **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 DA

Wrap Up
- With an MC Value of +1 and the R Level at the DP, there is a slight positive bias to the trading session today in the DA.  However, the positive bias was quickly negated by the penetration of the R Level in the overnight session.  The initial SELL DP BREAKOUT signal should be avoided as the market could have been producing a false breakout.  With that being said, the market rallied back to the R Level, where it held resistance.  The markets inability to trade above the R Level serves as confirmation of the shift in sentiment, and the SELL DP BREAKOUT strategy could be executed after the market failed from the R Level around 1:30 A.M.  Failure from this important Price Map level sets the tone for the remainder of the trading session. The market sold off quickly to the DT1, churned around that level for a bit, then continued lower around 8:30 A.M.  Although this trade required patience on the part of the trader, the market eventually traded down to our price target, DT2, and proved to be a profitable trade.

DJI FUTURES INDEX

Today's MARKET STATE for DJI FUTURES INDEX: **BULL TREND**

- Technically the MKT is in a positive posture and as long as it continues to hold structure, further gains should be expected.  If the integrity of the previous session low remains intact, look for excuses to get long.
- On the SELL side UP FADE strategies are valid but profit targets and risk management should be tight.  REVERSAL strategies should be applied only at the UP and +c after an exhaustive signal. Use DP BREAKOUT strategies as a signal to FADE a positive reaction against the DIR. Only until the MKT breaks the positive structure are sell signals an opportunity.
- On the BUY side BREAKOUT, FADE and REVERSAL are recommended as the MKT is bid and all buy signals are valid opportunity. If stopped out at or near the low tic of a reaction and the MKT is not following through to the downside, look to re-enter using the recent squeeze low as a stop. If the MKT breaks structure, de-leverage and be more selective as the likelihood of a sideways trade is high.

Today's PRICE MAP Performance for DF

Wrap Up
- The DJI FUTURES INDEX was in a "Bull Trend" state and our expectation is for further gains throughout the day, provided positive structure remains in tact.  The market moved sideways for most of the early session and eventually tested support at the DIR around 9 A.M.  The third test right before 9:30 A.M. failed to make a lower low, providing traders with an opportunity to execute a BUY DIR FADE strategy.  From here, the market took off, tested the UP twice, and then eventually moved higher through that level, maintaining positive structure throughout the entire move.  The minor level above the UP held support and positive structure around 1 P.M. when the market had a brief pullback, and our trade target was eventually achieved at the UT 1 just after 1:30 P.M.

CANADIAN DOLLAR

Today's MARKET STATE for CD: **NEUTRAL DIGESTION**
- Technically the MKT is "on the fence" with the potential to go in either direction or nowhere. Pick your 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 CD

Wrap Up
- Today in the CANADIAN DOLLAR we are reminded of the important role that the Critical Range plays in the JS Price Map.  In a NEUTRAL DIGESTIVE state, our expectation is for the price action to oscillate within the critical range, and the likelihood of a new trend emerging is low.  With the R at the minor level below the DP, the analyst is telling the trader that price action is expected to stay within the Critical Range; however, there is a chance that a sell off could reach as far down as the minor level (R Level).  In a sense, the analyst is expanding the Critical Range down to the R Level.  The market fell in the early morning session, touched the DP at 3 A.M. and provided us an opportunity for a BUY DP FADE above the R Level.  Remember, our expectation in a NEUTRAL DIGESTIVE state is for a sideways trading environment within the Critical Range.  Sure enough, the market rallied steadily throughout the day, building positive structure and respecting the trading range.  Shortly after 11 A.M. the rally stalled out at the UP, exactly where we expected it to, and gave us an opportunity to realize profits.

10YR TREASURY NOTES

Today's MARKET STATE for TY: **BEAR TREND**

- Technically the MKT is vulnerable to the offer. On the SELL side accept all BREAKOUT, FADE and REVERSAL signals. The MKT is on edge and any negative signal, especially below the previous session high, is an opportunity. Anticipate a price "zone" around a major resistance point to FADE. 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.

- On the BUY side REVERSAL strategies can be executed off of major support levels but preferably after an emotional sell off. This is an aggressive strategy and any profits should be realized at the previous support failure points. Avoid DP FADE BUYS even with confirmation, as this is more likely a plateau for a BREAKOUT SELL strategy. UP BREAKOUT strategies are not recommended but do have a better chance of succeeding than a DP FADE.

Today's PRICE MAP Performance for TY

 

Wrap Up
- Today was a great day for traders using the JS Price Map in the 10YR TREASURY NOTES market.  With an MC Value of -5 and a BEAR TREND Market State, the trader is looking to accept ALL SELL strategies (BREAKOUT, FADE AND REVERSAL) below the R Level.  Since the market started the day just below the DIR, the test of the DIR around 5 A.M. gave us an opportunity to execute a SELL DIR FADE.  A second opportunity was presented when the market made another attempt at the DIR just after 6 A.M., failed to achieve this level, and then sold off dramatically.  The market continued to sell off until it found support at the minor level 133'075.  From here we saw a sharp reaction back to the DP, and a failure from this level, which could have been a good place to add leverage to the short position as negative structure remained in tact, and price failed to hold above the DP just before 8 A.M.  The price then had another dramatic sell off and achieved our downside target of the DT1 where profits should have been taken.