DAX INDEX

Today's MARKET STATE DAX 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 DAX

Wrap Up

Market STRUCTURE was the key today in identifying the opportunity in the DAX futures market as the early morning sell-off gave traders an opportunity to get long from the expected support pivot.  At 8 am CT the market found structural SUPPORT at the lower extreme of the Critical Range (DP).  This allowed traders the opportunity to get long the DAX from the support pivot at the DP.  This level proved to be the low of the session as the market bounced off this support pivot, and continued to rally throughout the morning session.  The market build positive structure after bottoming at the DP and allowed traders to stay in the position up to the DIR.  By identifying the key inflection pivots in the DAX index, JS Traders were able to anticipate the opportunity at the DP and capitalize on it.

SWISS FRANC

Today's MARKET STATE SWISS FRANC **BEAR TREND DIGESTION**

- The MKT is in a difficult sideways trade with an underlying negative tone. On the SELL side BREAKOUT, FADE and REVERSAL strategies are valid with the expectation that the underlying negative momentum is going to reassert itself. Work any UP FADE or REVERSAL strategies within the digestive range, covering any position near the DP.
- On the BUY side avoid UP BREAKOUT strategies but rather FADE a negative reaction after a positive breakout signal against the DIR. DP REVERSAL strategies are recommended over FADE strategies as "sloppy" trading conditions are expected. Any FADE trades should get confirmation or a negative exhaustion or turning point signal before executing.

Today's PRICE MAP Performance for SF

Wrap Up

In a BEAR TREND DIGESTION signature market state, the sentiment is NEGATIVE below the R Level with the expectation for a negatively skewed digestive trading session.  The market tested the major support pivot at the DP around 1:30 am CT, illustrating that the market was respecting this level.  After bottoming at the DP, the market rallied back up to the DIR where it put in a BEARISH DIVERGENCE signal in the RSI.  Since this is a DIGESTIVE signature state, the RSI momentum oscillator will be the OPTIMAL TACTIC for confirmation of the trade.  Sure enough, the BEARISH signal in the RSI signaled JS Traders to get short the market on the pullback to the DIR and ride the bearish pressure downward.  For traders who missed the opportunity at 5:45 am CT from the DIR, another SELL opportunity was given when the market broke down from the DP support pivot on a "strong bar", indicating the overwhelming selling pressure.  The market continued to build negative structure down to the second major support pivot at the DT1 where it stabilized for the remainder of the session.

NATURAL GAS

Today's MARKET STATE NATURAL GAS **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 NG

Wrap Up

A breakdown from the KEY INFLECTION pivot at the DP R level today in the NATURAL GAS futures market signaled traders to ride the negative momentum with a SELL DP BREAKOUT strategy targeting the DT2.  With confirmation from the MOVING AVERAGE TACTIC (optimal hedge tactic), traders were able to trade WITH the negative momentum and get short from the DP.  After breaching this significant level of support, the market sold off sharply before finally stabilizing at our profit objective, the DT2.  Although the expectation coming into the session was for a NEUTRAL session trading between the Critical Range, the negative structure throughout the morning session was a "red flag" alerting traders to the possibility of the downward directional move.

BRITISH POUND

Today's MARKET STATE BRITISH POUND **BEAR TREND ACCELERATION**

- The MKT is vulnerable to the offer and threatening fresh losses. On the SELL side accept FADE, REVERSAL and BREAKOUT strategies below the previous session’s high point. DIR and DP BREAKOUT strategies should just "go", so do not risk much. UP FADE strategies are recommended over REVERSAL strategies as 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 the previous session high are a long shot, so risk less and go for more. Any DP FADE should have confirmation and is not recommended if the integrity of the previous session high is intact. After a break in the negative structure is confirmed, support levels can be used for short-term reactions using aggressive position management.


Today's PRICE MAP Performance for BP

Wrap Up

Identifying the KEY STRUCTURAL levels in the BRITISH POUND futures market had traders shorting the currency from the expected level of RESISTANCE.  In a BEAR TREND ACCELERATION market state, the expectation is for the market to maintain aggressive negative structure, building lower lows and lower highs.  When the market rallied above the *1.5239 level early morning, the aggressive signal was negated; however, the market remained bearish BELOW the sentiment bias, represented by the R Level.  The R Level at the minor level above the UP created a "resistance zone" with the UP being the expected MAJOR level of resistance.  Our first sell opportunity was given at 4:30 am CT when then market put in an OVERBOUGHT signal in the RSI at our KEY RESISTANCE PIVOT (UP).  Traders were able to short the market from the UP and ride the trade down to the DIR.  After bottoming about 12 tics above the expected level of SUPPORT at the DP, the market again tested the RESISTANCE PIVOT at the UP.  A double top was put in right at our major level of resistance with a SLIGHT bearish divergence signal with the 7:45 am CT top, once again allowing traders to enter the market from the short side.  As anticipated, the market sold back off to the DIR and allowed traders to take profits on the position.

S&P 500

Today's MARKET STATE S&P 500 **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 SP

Wrap Up

There was MAJOR opportunity for profits today in the S&P 500 futures market trading the JS PRICEMAP.  In a BULL TREND market environment, the expectation is for a continuation of the positive momentum and trader should look to get long the market aggressively ABOVE the R Level (@ DIR).  Just before 6:00 am CT, the market gave traders the first BUY opportunity of the session from the DIR R inflection pivot.  This is the HIGHEST risk-reward entry point for the session.  This trade turned profitable right away as the market rallied sharply off the low and eventually produced ANOTHER BUY entry signal at 8:30 am CT.  This BUY UP BREAKOUT strategy was in-line with our sentiment bias and market environment.  Also, the MOVING AVERAGE TACTIC, which is most reliable in trending market states, was in agreement with the buy signal.  This confluence of signals created a HIGH PROBABILITY trading opportunity in the S&P 500 market,  Traders were able to get on board the substantial rally and ride the momentum all the way up to the expected profit target at the UT2.

NATURAL GAS

Today's MARKET STATE NATURAL GAS **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 NG

Wrap Up

JS Traders were given a nice opportunity to sell the corrective rally in the NATURAL GAS futures market today.  In a BEAR TREND market state with the R Level at the minor level above the UP, the probability was to the downside with any corrective rally into the UP-R resistance band presenting a valid selling opportunity.  Around 9:15 am CT the market rally stalled at our expected level of resistance, allowing traders to execute a SELL UP FADE strategy.  The market respected this key structural pivot and spent the rest of the session probing lower, eventually giving traders the opportunity to net profits on the short position at the DIR.

GOLD

Today's MARKET STATE GOLD **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 GC

 

Wrap Up

A nice day for JS GOLD Traders as the market showed its hand early and performed to expectations.  In a NEUTRAL DIGESTION market state, the expectation is for a sideways trade within the CRITICAL RANGE; however, with the R Level at the DIR, this changes the expectation of the state.  The R at the DIR signals to traders that this market is "all wound up" and has the potential to create a directional move in either direction.  The market began to build negative structure from the DIR at 2 am CT, creating lower highs and lower lows as it progressed toward the DP.  After digesting  at the DP for 4-5:30 am CT, the market gave traders the SELL DP BREAKOUT opportunity around 5:30 am CT with confirmation from the MOVING AVERAGE TACTIC.  The optimal profit objective on this strategy is the DT2, which was attained with ease.  Notice how the market maintained NEGATIVE structure throughout the entire trade allowing traders to hold onto their shorts with confidence.  A good way to end the week on a profitable short from the DP BREAKOUT signal!