Futures: US 30YR T-BOND - Negative Signal needs Confirmation

Technically the MKT is in a BEAR TREND but in a DIGESTIVE posture. The MKT has produced a big negative signal but has yet to confirm a shift into trend mode. Look for excuses to get short below the 118-21 Inflection Pivot.

On the SELL side accept FADE, BREAKOUT and REVERSAL strategies off major inflection points. SELL BREAKOUT strategies below the 117-08 support pivot may need to be "worked" as the big negative signal will have the sellers excited. FADE strategies against the 117-31 Directional after a negative breakdown signal are good opportunities as well and can provide favorable area to put on leverage against structure. Be more aggressive with FADE and REVERSAL strategies at 118-21 or against the previous session high point targeting 117-08.

On the BUY side BREAKOUT strategies are aggressive and should be entered sooner [lower] than later [higher]. Expectations should be for the MKT to make its move early in the session and not look back, holding strucutre most of the day producing a positive "reversal" signal. If the MKT digests prior to making a positive move it is more likely a short squeeze to FADE. BUY FADE strategies off the 117-08 support pivot are aggressive and if they are going to work should do so on the initial test of support. Repeated tests or "confirmation" are more likely to give way to a lower trade. BUY REVERSAL strategies here are not recommended as any failure is confirmation of a negative trend shift. The probability is to the downside today so don't get stubborn buying breaks.

Note: The MKT has produced a big negative signal and is flirting with a turn for the worse. If it does not follow through on any new weakness it is more likely a nuetral shift than a positive one.

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.

ETF - XAL Airline Sector Index - Positive Signal

Technically the MKT is in a BULL TREND ACCELERATION posture and has produced a big positive signal. The MKT is in "play" and aggressive action is expected above the 3340 Inflection Pivot. If the rally is going to extend it will not do much if any trading below here.

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On the SELL side REVERSAL strategies can be executed off the 3483 and 3616 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 below 3340 strategies are not recommended but can be used as a signal for a FADE against Directional reisstance.

On the BUY side accept FADE, REVERSAL and BREAKOUT strategies above the previous sessions low point. BREAKOUT strategies above 3482 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 3340 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.

Commodities: CORN H'10- CORRECTIVE

Technically the MKT is in a NEUTRAL CORRECTIVE state producing a big positive signal against a negative trend. Opportunity exists on both sides of the MKT however the contract is vulnerable to a return to the offer with all trading below the 367-4 Inflection Pivot.

On the SELL side accept BREAKOUT, FADE and REVERSAL strategies off major inflection points with the expectation that the negative momentum is going to resume. REVERSAL strategies are recommended over a FADE strategies against the 361-0 and 367-4 resistance levels, which should have at least 1 if not 2 challenges to the integrity of the resistance before executing a sale against it. BREAKOUT strategies below 348-0 can risk a little more if current events and other MKTs of confluence confirm a negative posture. If not a better approach would be to FADE a positive "squeeze" reaction after a negative breakdown signal against 354-4 as the neutral technical position can keep the trend sideways.

On the BUY side avoid FADE strategies until after the previous session high point or major resistance level has been taken out to confirm a positive shift in momentum. REVERSAL strategies should be avoided as any negative signal is more likely an indication that the underlying trend is going to resume. BUY BREAKOUT strategies above 361-0 can be profitable up to 367-4 but should look to take profits and potentially REVERSE short at resistance targets. The trade is counter trend so avoid any positive commitments.

Note: The MKT has produced a big technical signal against the current trend. Be aware that the positive action may be a 1-day event with the negative trend quickly re-establishing itself. If the MKT is really going to turn it should remain firm and not look back.

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 - Corrective Signal

** NEUTRAL CORRECTIVE **
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Technically the MKT is in a NEUTRAL CORRECTIVE posture, working a slight positive signal bias against a negative trend. Opportunity exists on both sides of the MKT, however the threat of the return of the negative momentum must be respected as a good probability.

9083 is the session Inflection Pivot and high point for any positive follow through if the negative momentum is going to resume.

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On the SELL side accept BREAKOUT, FADE and REVERSAL strategies off major inflection points with the expectation that the negative momentum is going to resume. Until the MKT breaks the positive corrective structure, keep profit targets and position management tight as the neutral trading environment has the potential to keep the trade trendless. BREAKOUT strategies can risk a little more if current events and other MKTs of confluence confirm a negative posture with the expectation that the negative trend is going to resume. Get into these trades sooner [higher] than later [lower], anticipating a return to the negative trend.
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On the BUY side FADE strategies are valid off the 1st major support level but should not risk much and incorporate aggressive position management to reduce profit giveback. The underlying momentum remains negative and any long opportunity is short term with no follow through potential. REVERSAL strategies should be avoided, as any break in momentum is a sign that the BEAR TREND is ready to resume. BUY BREAKOUT strategies are aggressive and the better opportunity is to FADE a negative reaction after a positive breakout signal. These strategies should have resting limit orders at resistance target inflection points. Consider a REVERSE roll if there is confluence with other like MKTS or other indicator studies. The trade is corrective and expectations are for a resumption of the negative momentum.

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Note: The MKT is in a NEUTRAL CORRECTIVE position with the most likely outcome being a difficult sideways trade. The negative momentum has been broken, so beware of getting sucked into "false" failure especially early in the session. There is the potential for a sharp short covering rally so don't FADE a rise that continues to hold structure.

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.

EUREX: BUND - NEGATIVE SIGNAL NEEDS CONFIRMATION

Technically the MKT is in a BEAR TREND but in a DIGESTIVE posture. The MKT has produced a big negative signal but has yet to confirm a shift into trend mode. Look for excuses to get short with the 12380 Inflection Pivot the high point for any squeeze. If the contract is going to stay hard pressed it is unlikely it will do much if any trading above the 12339 resistance.

On the SELL side accept FADE, BREAKOUT and REVERSAL strategies off major inflection points. SELL BREAKOUT strategies below 12281 may need to be "worked" as teh big negative signal will have the sellers excited. FADE strategies against 12310 after a negative breakdown signal are good opportunities as well and can provide favorable area to put on leverage against structure. Be more aggressive with FADE and REVERSAL strategies at 12339 and 12380 targeting 12281. Above 12380 sentiment shifts.

On the BUY side BREAKOUT strategies are aggressive and should be entered sooner [lower] than later [higher]. Expectations should be for the MKT to make its move early in the session and not look back, holding strucutre most of the day producing a positive "reversal" signal. If the MKT digests prior to making a positive move it is more likely a short squeeze to FADE. BUY FADE strategies off 12281 are aggressive and if they are going to work should do so on the initial test of support. Repeated tests or "confirmation" are more likely to give way to a lower trade. BUY REVERSAL strategies are not recommended as any failure is confirmation of a negative trend shift. The probability is to the downside today so don't get stubborn buying breaks.

Note: The MKT has produced a big negative signal and is flirting with a turn for the worse. If it does not follow through on any new weakness it is more likely a nuetral shift than a positive one.

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.

DRG - Pharmaceutical Sector Index - POSITIVE SIGNAL

The DRG - Pharmaceutical Sector Index produce a big BULL TREND ACCELERATION signal and will remain aggressively bid with all trading above the 309.56 Inflection Pivot pressing resistance at 314.76 on any new interest. Be patient. If the market is going to settle back into a digestive trade it will stall out here. A held breach is a sign of strength that puts the 322.56 target in play.

A dip under 311.80 down plays yesterday's positive signal for a corrective trade down to 309.56. Be patient. If the positive momentum is going to resume it will above here. A held failure negates the positive signal confirming a directionless trade. Only under 303.86 can the Bear overwhelm this sector.

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 - PATIENCE

The USDJPY made some headlines but has yet to confirm a positive shift in sentiment and remains in a NEUTRAL DIGESTIVE technical state. Key off the 8987 Inflection Pivot for an indication of the session bias. This is the low point for any healthy pull-back. Above here the currency maintains a positive TRANSITIONAL tone, so be cautious buying into any early excitement. A breach of the 9117 resistance pivot will signal a test of the 9188-9182 resistance . If the rally is going to stall it will here. If not the recent highs at 9379 will be put to the test.

A failure from 8987 is a sign of weakness however a break below 8956 is needed to confirm a resumption of the negative momentum targeting 8861 on any turn for the worse. 8737 is the extended target for any new move south.

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.