SWISS FRANC

Today's MARKET STATE SWISS FRANC **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 SF

Wrap Up

The DOUBLE TOP in the SWISS FRANC today at our KEY INFLECTION PIVOT was the signal to get SHORT the SWISS FRANC market on the SELL UP REVERSAL strategy.  At 3:30 am CT, the market peaked its head above the UP R and then quickly reversed back under this key level of resistance.  After selling off back toward the DIR, the market had another go at the UP R and offered us an exhaustive DOUBLE TOP formation.  This was our "tell" to accept the SELL UP REVERSAL strategy which took the market all the way down to the DP SUPPORT pivot, where profits could have been realized.  After bottoming at the DP, a BUY DP REVERSAL hedge strategy got traders LONG from our SUPPORT pivot.  Traders were able to ride this trade all the way up to the DIR to close the session.

WHEAT

Today's MARKET STATE WHEAT **BEAR TREND CORRECTION**
- Technically the MKT momentum is counter trend and will need a strong showing to overcome the underlying negative threat.
- On the SELL side REVERSAL strategies off the UP or near the previous session or move high will work best. DIR or DP BREAKOUT should just go. A better option is to FADE positive reactions against the DIR after a negative signal.
- On the BUY side accept FADE and BREAKOUT strategies. BREAKOUT should expect some "starts and stops" The trade is corrective and sharp positive surges can be erased in a hurry.  FADE will work if the corrective state is going to continue.  REVERSAL strategies are a lower probability as a break in structure should be considered a potential negative shift in momentum.

Today's PRICE MAP Performance for W

Wrap Up

In a NON-TREND market state, the RSI momentum indicator gave traders the "tell" to accept the BUY R FADE strategy from our key inflection pivot.  As the market bottomed at the DP R level of SUPPORT, the RSI indicator signaled a major BULLISH DIVERGENCE.  This TACTIC gave traders the confident to get long the market from the lows of the session and ride the rally up to the DIR where profits could have been taken.  Today's action in the WHEAT futures market is another example of how MARKET TACTICS can aid in confirming optimal strategy given the technical state of the market.

NATURAL GAS

Today's MARKET STATE NATURAL GAS **BULL TREND CORRECTION**
- The MKT has produced a negative signal against an underlying positive trend. On the SELL side accept UP FADE signals on the 1st press into the area only. REVERSAL strategies should only be done off the UP or the previous session high point and will immediately work if they are going to. Keep position and risk management tight on these trades. SELL DIR and DP BREAKOUT strategies are aggressive but do have potential to be the start of a larger corrective turn. Keep risk management tight.
- On the BUY side accept REVERSAL signals off all major inflection levels, expecting the underlying positive momentum to resume. DP FADE strategies will work better with confirmation as the MKT is in a corrective state and will be probing lower, looking for soft spots. Work any BUY DIR and UP BREAKOUT strategies as any positive shift in momentum has the potential to be the start of the next leg higher. DIR FADE strategies after the UP Breakout should use greater leverage.

Today's PRICE MAP Performance for NG

Wrap Up

Today was a good day to execute our optimal STRATEGY from our KEY INFLECTION PIVOT in the NATURAL GAS futures market.  In a BULL TREND CORRECTION state, the market has produced a corrective signal in an underlying BULL TREND.  The expectation is that any corrective pullback should exhaust at the DP R.  By using our RSI tactic, JS Traders were able to spot the BULLISH DIVERGENCE signals forming with each successive low approaching the DP R inflection pivot.  Our final divergence signal just before noon CT gave traders the BUY DP REVERSAL signal.  Traders were able to ride the divergence signal all the way up to the DIR.

BRITISH POUND

Today's MARKET STATE SOYBEANS **NEUTRAL POSITIVE TRANSITION**


- 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 BP

Wrap Up

A perfect day to short the BRITISH POUND from our "resistance zone" as the market traded to within a few ticks of the KEY INFLECTION PIVOT for the session before the sharp sell off.  Around 6:30 am CT the market gave traders the first entry signal with a SELL R FADE strategy from the optimal entry point at the 1.5138 R LEVEL.  For traders that missed this signal, another SELL opportunity was presented just after 8 am CT with a SELL UP REVERSAL after the market REVERSED back into the Critical Range.  After retesting the UP for one final time at 9 am CT, the market collapsed down through the DIR and eventually closed at the lower end of the Critical Range between the 1.5044 minor level and the Downside Pivot (DP).  By identifying the RESISTANCE ZONE from the UP-R, JS Traders were able to short the BP from the highs of the session and capitalize on the big sell off.

JS Services Strategy Based Trading

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

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We also offer educational courses that teach traders how to incorporate technical analysis into their trading methodology.  For more information on our educational courses, contact erik@jsservices.com

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Good Trading!

SOYBEANS

Today's MARKET STATE SOYBEANS **NEUTRAL POSITIVE TRANSITION**


- Technically the MKT has the potential for a positive turn. Opportunity exists on both sides, however there is a better chance of an acceleration to the upside if the integrity of the previous session low remains intact. On the SELL side avoid UP and DIR FADE strategies until after the previous session low point has been broken. Until then, a better opportunity will be a UP REVERSAL strategy. The idea is that the transition trade is over and a negative shift back into a NEUTRAL DIGESTION is expected. DP BREAKOUT strategies can be profitable but they are aggressive. Risk less, go for more.
- On the BUY side accept BREAKOUT, FADE and REVERSAL strategies with the expectation that the current positive transition will continue. Keep aggressive position management on UP BREAKOUT strategies as the MKT is still in the neutral zone and has yet to commit to a new trend. A more conservative strategy would be to wait for negative reactions after a positive signal to FADE the DIR.


Today's PRICE MAP Performance for S

Wrap Up

Today the STRONG BAR breakout pattern was the "tell" to accept the UP BREAKOUT strategy in the SOYBEANS market.  The MKT was in a NEUTRAL POSITIVE TRANSITION market state with the sentiment bias below the market.  The press into the UP was the "tell" for whether or not the market was going to follow through on the transitional signal.  The STRONG BAR BREAKOUT above the UP was a solid psychological signal that confirmed the LONG opportunity from the UP.  The expectation was for a pop up to the UT2 and the explosive move today allowed traders to stay in the trade all the way up to the UT3 resistance level.  By realizing the positive momentum had staying power after holding above the UP on the retest, traders were able to get long the market on either the initial BREAKOUT from the UP or the retest of the UP.  The market maintained positive structure throughout the entirety of the trade and allowed traders to profit on the explosive upside move, that eventually corrected and closed the session just about flat on the day.

CANADIAN DOLLAR

Today's MARKET STATE CANADIAN DOLLAR **BEAR TREND CORRECTION**


- Technically the MKT is on edge and flirting with a release. The MKT has produced a big negative signal and any positive corrective action is expected to be short-lived. Any held strength is a sign that the trade will turn digestive.
- On the SELL side accept FADE, REVERSAL and BREAKOUT strategies below the previous session's high point. DIR and DP BREAKOUT may need to be "worked" as the MKT is on edge and will be emotional, producing some starts and stops before it drops.
- On the BUY side avoid REVERSAL strategies off major support levels as these signals are more likely short squeeze rallies. BREAKOUT strategies above the previous session high are a long shot, so risk less and go for more. Any DIR or DP FADE should have confirmation and is not recommended if the integrity of the previous session high is intact.


Today's PRICE MAP Performance for CD

Wrap Up

In a BEAR TREND ACCELERATION market state, traders should look to get short the market aggressively from below the R Level at the UT1.  After finding support at the DT1 following the early morning breakout from the DP, the market played host to a sharp corrective rally that tested the upside pivot.  This presented a PERFECT opportunity for traders to get short the market with a SELL UP FADE strategy.  After the market failed from our UP resistance pivot, a selling opportunity was again presented at the DIR in the form of the SELL CR BREAKOUT strategy.  After the early morning breach of the DP, the market retested the DIR and allowed traders to enter short, or add to their short position. Finally, the market, once again, broke out below the DP offering traders a THIRD short entry point with the SELL DP BREAKOUT strategy.  Having three different entry signals presented, the market proceeded to sell of sharply and reward the short positions.  After digesting a bit at the DT1, the market fell sharply through our initial target at the DT2 and made it all the way to our third support target at the DT3, allowing traders to take profits on the shorts.