MidCap400 - Corrective Signal

Indices- MidCap400 H'10 [EMD] - NEUTRAL CORRECTION

Technically the MKT is in a NEUTRAL CORRECTIVE state producing a big negative signal against a positive trend. Opportunity exists on both sides of the MKT.

Key off the 739.80 Inflection Pivot, as this level will confirm or deny the current negative signal.

On the SELL side avoid FADE strategies until after the previous session low point or major support level has been broken to confirm a negative shift in momentum. REVERSAL strategies should be avoided as any positive signal is more likely an indication that the underlying trend is going to resume. SELL BREAKOUT strategies can be profitable but they are aggressive and should look to take profits and potentially REVERSE long at support targets. The trade is counter trend so avoid any negative commitments.

On the BUY side accept BREAKOUT, FADE and REVERSAL strategies off major inflection points with the expectation that the positive momentum is going to resume. REVERSAL strategies are recommended over a FADE strategies, which should have at least 1 if not 2 challenges to the support integrity before executing a long off it. BREAKOUT strategies can risk a little more if current events and other MKTs of confluence confirm a positive posture. If not a better approach would be to FADE a negative "squeeze" reaction after a positive breakout signal as the neutral technical position can keep the trend sideways.

Note: The MKT has produced a big technical signal against the current trend. Be aware that the negative action may be a 1-day event with the positive trend quickly re-establishing itself. If the MKT is really going to turn it should remain hard pressed and provide little or no relief.

JS

This post supports the Strategy Based Trading, which is a methodology that focuses on the applied strategy verses a specific market. The approach looks to align strategies with markets whose current technical behavior matches the strategies criteria. Please review the following CME sponsored tutorial for a complete overview of this approach.

STRATEGY BASED TRADING Review http://progressive.powerstream.net/008/00102/edu/interactive/js_services/strategy_based_trading/index.html

For more information please contact me at info@jsservices.com. You can also visit http://www.jsservices.com/.The Inflection Pivot levels are available as a chart overlay on the following platforms; Ninja trader, Strategy Runner and eSignal. Sign up for a Complimentary FREE Trial.

Nat Gas G'10 - NEUTRAL NEGATIVE EXTREME

ENERGY - NAT GAS G'10 - NEUTRAL NEGATIVE EXTREME

Technically the MKT is at a NEUTRAL NEGATIVE EXTREME and is ready to either pop back into a firm neutral posture or break into a new down trend. The MKT has produced a technical sell signal into the 5.314 support and is in a "Make or Break" scenario. Volatility as well is on the fence and ready to rise with a new trend move and decline with some sideways "positioning".

Key off the 5.516 Inflection Pivot for an indication of the session tone.

On the SELL side accept FADE and BREAKOUT strategies expecting an immediate follow through to the MKT's technical sell signal. BREAKOUT strategies below 5.314 should be worked with the expectation that any sustained trade and repeated tests of support will give way to negative follow through. This strategy is vulnerable to the MKT expanding its lower support band in a series of starts and stops. Keep profit targets extended to pay for any monies spent holding a position. FADE strategies against 5.516 should expect an immediate reaction as any held trade or violation of major resistance foreshadows a potential turning point. These are good opportunities to "roll" into a long position when stopped out.

On the BUY side FADE and REVERSAL strategies off 5.314 and 5.121 support levels are qualified however the FADE is a lower probability and should use tight risk criteria. REVERSALs can risk more but should also go for more profit with the expectation of a turning point "key reversal" signal to play out. BREAKOUT strategies above 5.516 are aggressive and should just "go" and not look back targeting 5.758 and 5.872. Risk less and go for more. A laborious lack-luster rise after a positive breakout is a sign that the MKT is more likely expanding its resistance lid for a new consolidation verses transition from negative to positive technical posture.

Note: The MKT has produced a negative signal but it is not confirmed and trending indicators do not support follow through in either direction at this time. The MKT has the potential for big range conditions so don't get stuck FADing momentum in either direction.

JS

This post supports the Strategy Based Trading, which is a methodology that focuses on the applied strategy verses a specific market. The approach looks to align strategies with markets whose current technical behavior matches the strategies criteria. Please review the following CME sponsored tutorial for a complete overview of this approach.

STRATEGY BASED TRADING Review http://progressive.powerstream.net/008/00102/edu/interactive/js_services/strategy_based_trading/index.html

For more information please contact me at info@jsservices.com. You can also visit http://www.jsservices.com/.The Inflection Pivot levels are available as a chart overlay on the following platforms; Ninja trader, Strategy Runner and eSignal. Sign up for a Complimentary FREE Trial.

Soybeans H'10 - BEAR TREND ACCELERATION

Commodities: SOYBEANS H'10 - BEAR TREND ACCELERATION

Technically the MKT is in a BEAR TREND ACCELERATION position and is vulnerable to the offer. Any positive corrective action is expected to be short lived with only one upside "stop squeeze", topping out below the 1041-0 Inflection Pivot if the negative momentum is going to play out. Any held strength above here is a sign that the trade will turn digestive. This does not take away from the negative bias but does limit the profit potential for any new sales in the session.

On the SELL side accept FADE, REVERSAL and BREAKOUT strategies below the 1041-0 Inflection Pivot. BREAKOUT strategies below 1006-4 should just "go", so do not risk much. FADE strategies against 1035-2 and 1041-0 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 the 1006-4 and 1000-6 support levels as these signals are more likely short squeeze rallies and opportunities to SELL into and FADE. BREAKOUT strategies above the 1029-4 initial resistance are a long shot, so risk less and go for more. Any BUY FADE off 1006-4 or 1000-6 should have confirmation and are not recommended if the integrity of the previous session high is intact. After a break in the negative structure confirmed support levels can be used for short term reactions using aggressive position management.

Note: The MKT is in an aggressive sell posture. If the previous session high is intact its just a matter of time before the sellers try to overwhelm the MKT. Look for excuses to get short. If the previous session high is breached opportunity will be on both sides of the MKT, however the bias still rests with the Bears.

JS

This post supports the Strategy Based Trading, which is a methodology that focuses on the applied strategy verses a specific market. The approach looks to align strategies with markets whose current technical behavior matches the strategies criteria. Please review the following CME sponsored tutorial for a complete overview of this approach.

STRATEGY BASED TRADING Review http://progressive.powerstream.net/008/00102/edu/interactive/js_services/strategy_based_trading/index.html

For more information please contact me at info@jsservices.com. You can also visit http://www.jsservices.com/.The Inflection Pivot levels are available as a chart overlay on the following platforms; Ninja trader, Strategy Runner and eSignal. Sign up for a Complimentary FREE Trial.

FOREX - USDJPY - Positive Signal

FOREX - USDJPY - BULL TREND ACCELERATION

Technically the MKT is in a BULL TREND ACCELERATION posture and has produced a big positive signal. The MKT is in "play" and remains a buying opportunity down to the 9188 Inflection Pivot. Anticipate opportunity and position management adjustments, as quick price action is likely.

On the SELL side REVERSAL strategies can be executed off the 9408 and 9471 resistance levels. Expectations should be for an immediate exhaustive turn with the MKT quickly moving away from the area. A gradual decline folowing a reversal signal and it more likely just a pause before another round of buying, so in either scenerio keep position management tight. Avoid SELL FADE strategies even with confirmation, as this is more likely a lid for a BREAKOUT BUY strategy. SELL BREAKOUT strategies below 9188 are not recommended but can be used as a signal for a FADE against the 9345 Directional reisstance.

On the BUY side accept FADE, REVERSAL and BREAKOUT strategies off the major support levels. BREAKOUT strategies above 9408 should just "go", so do not risk much. Be wary of these strategies early in the session and look to exit on the 1st break in strucutre. BUY FADE strategies are recommended off the 9219 and 9188 support levels over REVERSAL strategies as the MKT is expected to hold higher structure and any failure should be considered a potential negative corrective shift. The MKT is aggressively bid which should keep pace throughout the session if the TREND ACCELERATION forecast is going to play out.

Note: The worst-case scenario for a MKT in this technical position is to go higher early in the session and then break all day. Be alert to recognize this. If you have > 3 loser long trades consider taking the next sell signal anticipating a corrective turn. Remember in this technical position if the MKT is going higher it should just go. If not there is the potential for a corrective break or digestive trading environment.

JS

This post supports the Strategy Based Trading, which is a methodology that focuses on the applied strategy verses a specific market. The approach looks to align strategies with markets whose current technical behavior matches the strategies criteria. Please review the following CME sponsored tutorial for a complete overview of this approach.

STRATEGY BASED TRADING Review http://progressive.powerstream.net/008/00102/edu/interactive/js_services/strategy_based_trading/index.html
For more information please contact me at info@jsservices.com. You can also visit http://www.jsservices.com/.The Inflection Pivot levels are available as a chart overlay on the following platforms; Ninja trader, Strategy Runner and eSignal. Sign up for a Complimentary FREE Trial.

NAT GAS G'10 - BULL TREND ACCELERATION

FUTURES: NATURAL GAS Feb'10 - ** BULL TREND ACCELERATION **

Technically the MKT is in a BULL TREND ACCELERATION posture and has produced a big positive signal. The MKT is in "play" above the 5.879 Inflection Pivot and aggressive action is expected off of technical signals. Anticipate opportunity and position management adjustments, as quick price action is likely.

On the SELL side REVERSAL strategies can be executed off of the 6.235 and 6.564 resistance levels. Expectations should be for an immediate exhaustive turn with the MKT quickly moving away from the area. A gradual decline folowing a reversal signal and it more likely just a pause before another round of buying, so in either scenerio keep position management tight. Avoid SELL FADE strategies even with confirmation, as this is more likely a lid for a BREAKOUT BUY strategy. SELL BREAKOUT strategies below 5.879 are not recommended but can be used as a signal for a FADE against 6.085 Directional reisstance.

On the BUY side accept FADE, REVERSAL and BREAKOUT strategies above the 5.879 Inflection Pivot. BREAKOUT strategies above 6.240-6.235 resistance should just "go", so do not risk much. Be wary of these strategies early in the session and look to exit on the 1st break in strucutre. BUY FADE strategies off 5.935 and 5.879 support 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. The MKT is aggressively bid which should keep pace throughout the session if the TREND ACCELERATION forecast is going to play out.

Note: The worst-case scenario for a MKT in this technical position is to go higher early in the session and then break all day. Be alert to recognize this. If you have > 3 loser long trades consider taking the next sell signal anticipating a corrective turn. Remember in this technical position if the MKT is going higher it should just go. If not there is the potential for a corrective break or digestive trading environment.

JS

This post supports the Strategy Based Trading, which is a methodology that focuses on the applied strategy verses a specific market. The approach looks to align strategies with markets whose current technical behavior matches the strategies criteria. Please review the following CME sponsored tutorial for a complete overview of this approach.

STRATEGY BASED TRADING Review http://progressive.powerstream.net/008/00102/edu/interactive/js_services/strategy_based_trading/index.html
For more information please contact me at info@jsservices.com. You can also visit http://www.jsservices.com/.The Inflection Pivot levels are available as a chart overlay on the following platforms; Ninja trader, Strategy Runner and eSignal. Sign up for a Complimentary FREE Trial.

FOREX - EURJPY - NEUTRAL CORRECTION

FOREX - EURJPY ** NEUTRAL CORRECTION **

Technically the MKT is in a NEUTRAL CORRECTIVE state producing a big negative signal against a positive trend. Opportunity exists on both sides of the MKT however the negative signal must be respected below the 13219 Inflection Pivot.

On the SELL side avoid FADE strategies against the 13219 pivotal resistance until after the previous session low point or major support level has been broken to confirm a negative shift in momentum. REVERSAL strategies here should be avoided as any positive breach is more likely an indication that the underlying positive trend is going to resume. SELL BREAKOUT strategies under the 13119 support can be profitable but they are aggressive and should look to take profits and potentially REVERSE long at support targets. The trade is counter trend so avoid any negative commitments.

On the BUY side accept BREAKOUT, FADE and REVERSAL strategies off major inflection points with the expectation that the positive momentum is going to resume. REVERSAL strategies are recommended over a FADE strategies at the 13119 support, which should have at least 1 if not 2 challenges before executing a long off it. BREAKOUT strategies above 13219 can risk a little more if current events and other MKTs of confluence confirm a positive posture. If not a better approach would be to FADE a negative "squeeze" reaction after a positive breakout signal as the neutral technical position can keep the trend sideways.

Note: The MKT has produced a big technical signal against the current trend. Be aware that the negative action may be a 1-day event with the positive trend quickly re-establishing itself. If the MKT is really going to turn it should remain hard pressed and provide little or no relief.

JS

This post supports the Strategy Based Trading, which is a methodology that focuses on the applied strategy verses a specific market. The approach looks to align strategies with markets whose current technical behavior matches the strategies criteria. Please review the following CME sponsored tutorial for a complete overview of this approach.

STRATEGY BASED TRADING Review http://progressive.powerstream.net/008/00102/edu/interactive/js_services/strategy_based_trading/index.html

For more information please contact me at info@jsservices.com. You can also visit http://www.jsservices.com/.The Inflection Pivot levels are available as a chart overlay on the following platforms; Ninja trader, Strategy Runner and eSignal. Sign up for a Complimentary FREE Trial.

FOREX - EURUSD - BEAR TREND CORRECTION

FOREX EURUSD - BEAR TREND CORRECTION

Technically the MKT is in a BEAR TREND CORRECTION and has yet to confirm a break in momentum. Positive corrective action today will need some support if it is going to have much staying power, as the negative momentum remains a threat.

Key off the 14373 Inflection Pivot for the session bias.

On the SELL side accept REVERSAL and BREAKOUT strategies. Downside BREAKOUT strategies below 14373 should just "go" with expectations that the negative momentum is going to resume course targeting 14257. If there is more than one pullback after a downside breakout it is more likely that the corrective rally is about to resume. FADE strategies against the 14489 resistance pivot should wait for confirmation as the MKT is correcting and has the potential to be "stop and go" as it probes higher. Keep profit targets tight. A better strategy is a REVERSAL strategy, as a violation of a major inflection point that cannot be held is a negative turning point signal with the potential to be the resumption of the negative trend.

On the BUY side REVERSAL strategies off the 14373 Inflection Pivot will work best with the expectations targeting a new corrective high. Avoid BREAKOUT strategies above 14489 but rather FADE negative reactions off structure after a positive signal. If the corrective trade is going to continue targeting 14593, it should hold structure and maintain a trade above 14373. Once it doesn't its time to roll the other direction.

Note: Although the MKT is in a BEAR TREND the current CORRECTION has the potential to be the start of a positive turn. Don't get stuck in sell strength mode looking to "pick a top" against a structured rise. Rather go with it or wait for the momentum to be broken to jump on the BEAR TREND.

JS

This post supports the Strategy Based Trading, which is a methodology that focuses on the applied strategy verses a specific market. The approach looks to align strategies with markets whose current technical behavior matches the strategies criteria. Please review the following CME sponsored tutorial for a complete overview of this approach.

STRATEGY BASED TRADING Reviewhttp://progressive.powerstream.net/008/00102/edu/interactive/js_services/strategy_based_trading/index.html

For more information please contact me at info@jsservices.com. You can also visit http://www.jsservices.com/.The Inflection Pivot levels are available as a chart overlay on the following platforms; Ninja trader, Strategy Runner and eSignal. Sign up for a Complimentary FREE Trial.