NASDAQ 100

Today's MARKET STATE for NASDAQ 100: **NEUTRAL NEGATIVE EXTREME**

- The MKT is on the offer and pressing into the lower extreme. On the SELL side accept UP REVERSAL strategies over FADES, expecting more of a trendless trading environment rather than a new negative trend move. Avoid DP BREAKOUT strategies but rather FADE into a positive reaction after a negative breakdown signal against the DIR. The MKT is extended and will have trouble sustaining any new weakness. Use aggressive position management and anticipate potential early exit points to reduce profit give-back.
- On the BUY side DP FADE and REVERSAL strategies are qualified, however the FADE is a lower probability and should use tight risk criteria. DP and DT1 REVERSALS can risk more but should also go for more profit with the expectation of the MKT putting in a short term turning point signal. UP BREAKOUT strategies are aggressive and should just "go" and not look back. Risk less; use aggressive position management and conservative profit limits.

Today's PRICE MAP Performance for ND

Wrap Up
-Today we had a NEUTRAL NEGATIVE EXTREME Market State in the NASDAQ 100 Futures market.  Our market commentary calls for SELL UP REVERSAL trades which is in line with our sentiment bias represented by the R Level.  At 8:30 A.M. the market broke through the UP briefly and then sold off giving traders an opportunity to SELL the REVERSAL signal from the UP.  The market again tested the UP just before 10 A.M. where it failed to produce a higher high before selling off sharply.  The market wasted no time in falling down to the DIR where it digested for a bit and eventually traded down to our profit target at the DP.  Today's NASDAQ 100 PriceMap illustrates the importance of defining Market State, Structure, and Strategy before each trading day.

BRITISH POUND

Today's MARKET STATE for BRITISH POUND: **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 BP

Wrap Up
- Trading the Playbook today in the BRITISH POUND proved to be extremely profitable.  With an MC Value of +1 there is a slight positive tone to the NEUTRAL DIGESTION Market State.  The R Level at the UP represents the Sentiment Bias for the day  If the market is going to stay in a digestive zone, it should remain below the R; however, a breach of the R could mean the resumption of a new move higher.  As stated in our commentary, UP BREAKOUT trades are valid but should expect a laborious trade.  Chances are you missed the the BREAKOUT signal that occurred last night around 11 P.M.  With that being said, the market sold off to the R level where it held SUPPORT.  This was a very bullish signal and an opportunity to get long from the R Level at 3 A.M.  The market rallied violently and, within an hour, the price target at the UT2 had been achieved.  The market met resistance at the first minor level above the UT2 (1.6301) and then cooled off from there.  After digesting between the UT1 and UT2 from 8 A.M. to 10 A.M. the market broke back down to the R Level  just after 11 A.M. and remained there for the remainder of the session. 

NASDAQ 100

Today's MARKET STATE for NASDAQ 100: **BULL TREND DIGESTION**

- Technically the MKT is positive, however today it is on the fence as to its immediate direction with opportunity on both sides of the MKT.
- On the SELL side accept FADE and REVERSAL signals at the UP only. The underlying momentum is up, so keep position management and profit targets aggressive on any counter trend trades. Avoid DP BREAKOUT strategies as follow through in either direction is not expected. A DIR FADE strategy after a downside breakout is an opportunity but look to take profits at the DP.
- On the BUY side accept FADE and REVERSAL strategies off the DP and DT1 with the expectation that any test may need to build a base before it can mount a sustained positive push. UP BREAKOUT strategies are valid as well as any "pullback" opportunity following a positive breakout signal for a BUY DIR FADE strategy.
Today's PRICE MAP Performance for ND

Wrap Up
- A good day for profits in the NASDAQ 100 today as the market performed to expectations.  In a BULL TREND DIGESTION Market State with the R Level just below the DP, our expectation is that the BULL TREND is still in play as long as price respects this level.  As stated in our market commentary (STRATEGY), we are looking to BUY FADE and REVERSAL strategies off of the DP and DT1.  As our R Level is between these two levels, a BUY R FADE strategy is the highest risk-reward trade for the day.  After respecting the R Level before 2:30 A.M. the market began to sell off just after 8:30.  The R Level held support at 9 A.M. and gave traders an opportunity to execute the BUY R FADE trade we were looking for.  After encountering support at the R, the market rallied through the DP and up to around 2853.00, just below the DIR (our target).  If you hadn't cashed in on your trade at 10 A.M., the market eventually pushed through the DIR around 2:30 P.M. without ever trading back below the DP.

EURO-BOBL

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

 

Wrap Up
- Today was a unique day in the EURO-BOBL Futures market.  With an MC Value of -5, JS Services proprietary technical indicator is indicating that the market is in a BEAR TREND.  However, there was evidence in the RSI that made a case for a corrective rally so by placing the R Level at the DIR, the analyst is saying if the BEAR TREND is going to continue, it should just go.  Just after midnight the market advanced above the minor level at 124.80.  It then sold off sharply, only to encounter SUPPORT at the R Level.  This successful test of the R Level should have signaled traders to get long the market from the R Level with tight position management, as the underlying BEAR TREND must be respected.  As it played out, the market rallied throughout the day, had a brief pullback which found support at the UP around 4:30 A.M. and then continues up to the UT1, where profits should have been realized.  Today served as another example of the importance of the R Level when trading with JS Services Strategy Based Trading Approach.

DJI FUTURES INDEX

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

- The MKT has a firm tone and as long as 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 YM

Wrap Up
- In a relatively calm day for the markets today, the DJI FUTURES INDEX respected the analyst placement of the R Level which could have translated to profits for you, as a trader.  The R Level is the "Breaking Point" for the positive sentiment.  After respecting the R around 3:30 the market makes another attempt to breakdown from this level around 5 A.M.  The market digests around this level, and then resumes the underlying positive trend.  This overnight pullback position us as traders to benefit and execute a BUY DP FADE around 5:30 A.M.  The market maintained positive structure throughout the day, making higher highs and higher lows.  The market broke through the DIR and eventually made it past our minor level at 13502 before running out of steam.  A good strategy would have been to place a stop at 13502 after this level had been penetrated, which would have minimized your profit giveback on the trade.

JS Services Strategy Based Trading

Defining Market State, Structure, and Strategy is essential to becoming a successful trader.  See how JS Services can help you reach your maximum potential!

The following web video provides the foundation to our Strategy Based Trading approach.

http://progressive.powerstream.net/008/00102/edu/interactive/js_services/strategy_based_trading/index.html

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If you have any questions, feel free to email us at: info@jsservices.com.

Good Trading!

5-YEAR TREASURY NOTES

Today's MARKET STATE for 5-YEAR TREASURY NOTES: **BULL TREND**

- The MKT has a firm tone and as long as 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 FV

Wrap Up
- Big day for traders in the 5-YEAR TREASURY NOTES market as our analyst correctly positioned our traders for the day.  With an MC Value of +4 and a BULL TREND Market State, our expectation is for a move higher.  However, by placing the R Level at the DIR, the analyst is saying "if this market is really in a bull trend, prove it!"  The market broke below the DIR in the early morning session, held support at the minor level 124'097 and then rallied back up to the DIR, where it failed twice to surpass this level.  This action negated the positive bias, and served as a prime opportunity to execute a SELL DIR BREAKOUT strategy.  Our profit target for this trade is the DT1, which was achieved right around 6 A.M.  Looking at our market commentary (STRATEGY), we are instructed to use a DP BREAKOUT as a signal to execute a SELL DIR FADE after a corrective rally.  Well, we had the DP BREAKOUT just before 5 A.M. and the corrective rally back up to the DIR stalled out around 124'112, giving us a PERFECT opportunity to SELL the DIR FADE after a DP BREAKOUT signal.  Wasting no time at all, the market sold off down to our profit target, the UT1, just after 9 A.M.  Today proved to be very profitable day for those trading with JS Services!