Wednesday, March 31, 2010

CRUDE OIL - BULL TREND ACCELERATION 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 off of technical signals. Anticipate opportunity and position management adjustments, as quick price action is likely.

82.43 is the Inflection Pivot keeping the contract in an aggressive Bull posture.


On the SELL side REVERSAL strategies can be executed off of the 84.14 and 85.28 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 the 83.00 support pivot 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 84.14 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 83.00 and 82.43 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

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Tuesday, March 30, 2010

USDJPY - TRUTH OR DARE


Technically the USDJPY is in a BULL TREND ACCELERATION posture after producing a big positive signal. The MKT is in "play" and aggressive action is expected off of technical signals. Anticipate opportunity and position management adjustments, as quick price action is likely.

The 9207 Inflection Pivot is the low point for any pull back if the positive signal is going to remain in force.

On the SELL side REVERSAL strategies can be executed off of major resistance levels at 9379 and 9548. 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 9243 and 9207 are not recommended but can be used as a signal for a FADE against Directional resistance at 9311.

On the BUY side accept FADE, REVERSAL and BREAKOUT strategies above the previous sessions low point. BREAKOUT strategies above 9379 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 the 9243 and 9207 support levels 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

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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

JS

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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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