Monday, March 29, 2010

GOLD - POSITIVE TRANSITION ABOVE 1103.1

Technically the MKT is in NEUTRAL TRANSITION and difficult trading conditions are expected. The MKT has produced an strong positive signal which should keep the MKT firm today if the signal is valid. If the integrity of the prior session's high remains intact a return to a sideways trend less trade is likely. Roll with any new strength and leverage up if good risk parameters present themselves. The potential to get in at the beginning of a new move higher is real.

Expectations are for the MKT to remain firm above the 1103.1 Inflection Pivot.

On the SELL side REVERSAL strategies can be executed off the 1118.5 and 1126.2 major resistance levels. Avoid this strategy on higher levels as any new strength has the potential to be the beginning of a move. If the integrity of the previous session high remains intact FADE strategies can be accepted at 1118.5 with tight profit target objectives. Use SELL BREAKOUT strategies as a signal to FADE a positive pull-back against 1110.8 after a confirm break in the positive momentum. Only take this trade if the previous session high point remains intact.

On the BUY side be more aggressive after the previous session high is taken out. Not that this is a pre-condition but should be noted as a confirmation of strength. BREAKOUT strategies above 1118.5 should just "go" so keep risk parameters tight. FADE into any negative reaction off an unsuccessful upside BREAKOUT after a support level is confirmed. Use a REVERSAL strategy to leverage up after the MKT gets back above the original breakout point. If the integrity of the previous session high remains intact, avoid REVERSAL strategies as expectations are that the "positive" signal is going to follow through it should do so straight away and any break momentum is a negative signal that the MKT is going to return to its neutral posture. FADE strategies off 1103.1 are recommended early in the session or near the end. The positive signal will either play out from the get go or will make its move in the latter stages of the trading session.

Note: This is a dangerous emotional trading environment. MKT reactions to go a little further that you expect in either direction so anticipate this in your position and risk management.

JS

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Sunday, March 28, 2010

EuroSTOXX - NEUTRAL POSITIVE SHIFT



Technically the MKT is in a NEUTRAL DIGESTIVE position with a positive bias above 2856.0 Inflection Pivot. The MKT has produced a positive signal and if it is going to influence today's session the MKT will maintain a trade above this price point.

On the SELL side BREAKOUT strategies below 2856.0 are aggressive and but do have potential to sharply turn sentiment back to the opposing digestive extreme. Expectations should be for the MKT to make its move early in the session and not look back, holding structure most of the day. If the MKT digests prior to making a negative move, it is more likely a squeeze on the longs to FADE. SELL FADE strategies against 2890. are aggressive as well and if they are going to work, should do so on the initial test of resistance. Repeated tests or "confirmation" are more likely to give way to a higher trade. SELL REVERSAL strategies are recommended off the session initial major resistance levels only as the MKT potential for positive trend shift. The probability is to the upside today so don't get stubborn selling strength.

On the BUY side accept FADE, BREAKOUT and REVERSAL strategies off major inflection points. BUY BREAKOUT strategies above the 2890.0 resistance pivot should just "go" and not look back, so keep risk parameters tight. FADE strategies off the 2873.0 Directional after positive breakout signals are good opportunities as well but expectation should be for the MKT to quickly move back above violated resistance. If the trade just "hangs around", it is likely a signal that more digestive action is coming and a retest of support should be expected. Be more aggressive with FADE and REVERSAL strategies at the 2856.0 Inflection Pivot, targeting the opposing digestive resistance. Below this price point wait for 2nd or 3rd test before entering off support rather than stepping in front.

Note: The MKT is in neutral so "sloppy" conditions with "false signals" should be anticipated. Have a plan for any squeeze. Don't get stubborn, however, if the MKT starts to hold structure and gets into trend mode as the contract may just be expanding its digestive parameters producing a one way trade into the close and new extreme.


JS


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Friday, March 26, 2010

Trading Room Performance

JS Services has recently started a "live" trade room to support its products and the CLEARBOX Trading approach. The Trading Room is educational with "live" practical application of JS Services Trading tools and CLEARBOX trading strategies.

Below is a sample of the CLEARBOX systems as managed by our Risk Manager.

JS Services TF BASIC GURU - RUSSELL2000 Index March 25, 2010 Performance

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Twitter Alert Performance

March 25, 2010 was an eventful day for the US Equity Indices. The following are the results from a couple of my tweets.















DOW FUTURES Mar 25, 2010 Price Map Overlay

SP500 mAR 25, 2010 Price Map Overlay

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Thursday, March 25, 2010

SP500 Futures Index - Set to Swing


The JUN'10 SP500 Futures contract is in a NEUTRAL DIGESTIVE technical state after an unsuccessful press to new move highs. This MKT is set to churn with 1176-1146.75 the current digestive extremes.

1146.75 is the session Inflection Pivot and the low point for any big sideways trade.

On the SELL side avoid BREAKOUT strategies below 1157.50 but rather FADE a positive reaction after a negative breakdown signal against 1166.75. REVERSAL strategies at 1176 and 1185.25 are recommended over FADE strategies as "sloppy" trading conditions are expected. Any FADE trades should get confirmation or an exhaustion or turning point signal before executing. Position management adjustments should be anticipated for all sales as sideways trading conditions can quickly erase profits.

On the BUY side BREAKOUT strategies above 1166.75 and 1176 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 giveback. FADE and REVERSAL strategies are recommended off 1157.50 and the 1153.25-1146.75 support band. The probability is to the upside today but is not a day to press it.

Note: The MKT is in neutral and is more likely to go nowhere fast. Don't get stubborn, however, if the MKT starts to get into trend mode as the contract may just be expanding its digestive parameters producing a one way trade into the close and new extreme. Be more aggressive accepting BUY signals off 1153.25 and down to 1146.75 as this is the base for any new advance.

JS

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Wednesday, March 24, 2010

US 30YR T-BOND Futures - BEAR TREND EXTREME


Technically the MKT has produce a negative signal into the EXTREME of a BEAR TREND move and will need to hold structure if it is going to maintain an aggressive sell posture. Don't press it. Although the MKT is vulnerable a break in momentum has the potential to spark a sharp corrective rally.

Key off the 116-27 Inflection Pivot as the structure turning point.

On the SELL side downside BREAKOUT strategies below the 115-15 support pivot are valid and should continue to hold negative structure if they are going to extend. Get in to these trades sooner (higher) than later (lower) as new weakness is expected to be stop and go. A more conservative strategy is to FADE a positive reaction after a negative breakdown signal and even better to wait for a negative REVERSAL off this corrective rise rather than stepping in front of it. FADE and REVERSAL are recommended at 116-27, 117-16 and 118-05 especially after a sharp corrective rise. The MKT is negative but is also extended and the probability of a corrective rise is high. Wait for an exhaustive signals or confirmation to jump on.

On the BUY side BREAKOUT strategies above 116-27 should have aggressive trail stops and tighter profit targets. There is a good chance for a corrective turn but profit targets and position management should be tight as this is more likely a rally to sell. If you get on, ride it until structure is broken and then look to go the other way. BUY REVERSAL strategies off the 115-15 and 114-24 support level will provide opportunity but will work best after a sharp trade lower verses a steady decline. Expectations are for no follow through not a reversal of sentiment. Keep risk management and profit targets tight to reduce giveback as the underlying technical foundation today is negative. Avoid FADE BUYS as the negative trend remains enforce with sell FADE opportunities the better place to step out.

Note: Just because the MKT is extended does not mean it cannot get more extended. Any long ideas should wait for a signal don't force one.

JS

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Tuesday, March 23, 2010

EuroStoxx 50 Index - Trying to Make a Difference


The EUREX Jun'10 EUROSTOXX 50 Futures contract is trying to make a difference and will need to sustain a trade above the 2444.0 Inflection Pivot to keep its spirits up pressing resistance at 2871.0. Be patient. If the MKT is going to fall back into a digestive trade it will reject from here. A held violation is needed to confirm a fresh advance targeting 2925.0 on any new interest.


Trading below 2844.0 puts the MKT back in a soft digestive trade down to 2817. Keep it tight. If the underlying positive momentum is going to resume it will do so from here. If not sentiment turns negative targeting 2763.0 on any negative turn of events.


JS


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