AUSTRALIAN DOLLAR

Today's MARKET STATE for AUSTRALIAN DOLLAR **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 DA

Wrap Up
Today in the Australian Dollar futures market we had an MC Value of +5 producing a BULL TREND market state.  This signaled traders to look for an excuse to get long the market.  Buying the DIR breakout strategy proved to be profitable as the MKT continued higher, taking our the UP and eventually trading up to the minor level at 1.0526

DAX INDEX

Today's MARKET STATE for DAX 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 DAX

 

Wrap Up
Today in the DAX futures market we had an MC Value of +7 indicating a BULL TREND market state.  The R Level is below the Critical Range, indicating to traders that the opportunity is to the long side above this level.  The market sold off during the overnight session and offered traders a BUY DP FADE opportunity.  This trade proved to be profitable, as the market found support at the DP, traded above the DIR, and eventually stabilized around our minor level above the DIR.

CANADIAN DOLLAR

Today's MARKET STATE for CANADIAN DOLLAR **BULL TREND ACCELERATION**
 

-Technically the MKT is in play after producing a big positive signal.  On the SELL side REVERSAL strategies can be executed off the UP and +c.  Expectations should be for an immediate exhaustive turn with the MKT quickly moving away from the area.  Avoid SELL UP FADE strategies even with confirmation.  SELL DP BREAKOUT strategies are not recommended but can be used as a signal for a FADE against the DIR.

 -UP BREAKOUT strategies should just “go”, so do not risk much.  Be wary of these strategies early in the session and look to exit on the 1^st break in structure.  BUY DP FADE strategies are recommended over REVERSAL strategies as the MKT is expected to hold higher structure and any failure should be considered a potential negative corrective shift high.

Today's PRICE MAP Performance for CD

 

Wrap Up
- Today the market is in play after producing a big positive signal  The R Level at the DP represents the Sentiment bias for the session and traders should look to go long the market above this level.  The market sold off in the overnight session and eventually made it down to our R Level just before 7 A.M.  From here, traders could have executed a BUY DP FADE strategies with the expectation for follow through on the BULL TREND ACCELERATION market state.  The market respected the R Level perfectly and sent the market rallying higher through our DIR and eventually to our UP, where profits could have been realized. 

CRUDE OIL

Today's MARKET STATE for CRUDE OIL **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.

-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 CL

 

 

Wrap Up
- Today in the CRUDE OIL market, the downside breakout from the Critical Range signaled to traders that Crude Oil was transitioning lower.  When we got a breakout signal out from the Critical Range, our expected target is two APMD away from our entry point, in this case, the DT2.  The SELL DP BREAKOUT signal that was generated at 7:45 A.M. followed through to the downside and made it all the way down to our expected target at the DT2 around 10:30 A.M.

SP 500

Today's MARKET STATE for SP 500 **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.

-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 SP

Wrap Up
- In a NEUTRAL DIGESTION market state, traders should be expecting a choppy, sideways trading environment.  Our market commentary tells us to look for BUY DP and DT1 FADE and REVERSALS as our expectation is for trading to stay within out Critical Range.  Around 10 A.M. the market gives us out BUY DP REVERSAL signal and traders were able to ride the rally all the way up to our key inflection point at the R Level.  From here, traders could have reversed and gone short the market after the R Level proved to be the key level of resistance.

NATURAL GAS

Today's MARKET STATE for NATURAL GAS **NEUTRAL DIGESTION**

-The MKT is in a digestive position with a negative technical bias.  On the SELL side accept FADE, BREAKOUT, and REVERSAL strategies off major inflection points.  DP SELL BREAKOUT strategies should just “go” and not look back.  DIR FADE strategies after a negative breakdown signal are good opportunities as well.  If the trade just “hangs around” after a breakdown signal, it is likely that more digestive action is to come.  Be more aggressive with UP FADE and REVERSAL strategies and resistance inflection points at or against the previous session high point.

-On the BUY side DIR and UP BREAKOUT strategies are aggressive and should hold structure if they are good.  DP BUY FADE strategies are aggressive and if they are going to work should do so on the initial test of support.  Repeated tests are more likely to give way to a lower trade.  BUY REVERSAL strategies are recommended off the DP 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.

Today's PRICE MAP Performance for NG

Wrap Up
- Today we had a negative bias on our NEUTRAL DIGESTION market state in the NG which was confirmed by the R Level above the Critical Range.  The opportunity is to the downside and our commentary tells us to accept all SELL BREAKOUT FADE and REVERSAL strategies.  After digesting around the DIR in the overnight session, the market breaks below this key level, allowing us to get short the market from the DIR and take profits at the DP at 8 A.M.  After this, we had two more opportunities to get short the market from the DIR and realize profits around the DP.  The market didn't trade all the way down to the DP on the last two trades; however, due to the digestive nature of the state, we should be aggressive with taking profits.

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