Tuesday, April 6, 2010

BUND - MIXED SIGNALS

The MKT is in Neutral but has produced a big negative signal. Stay nimble. If the signal does not follow through the potential for a whiplash rally is high.

Key of the 12282 Inflection Pivot for an indication of the session tone.


On the SELL side accept FADE, BREAKOUT and REVERSAL strategies off major inflection points. SELL BREAKOUT strategies below 12246 may need to be "worked" as the neutral position will produce some starts and stops. FADE strategies after a negative breakdown signal against the 12282 Directional are good opportunities as well but expectation should be for the MKT to quickly move back under the failed support. If the trade just "hangs around" is more likely a signal that more digestive action is coming and a retest of resistance should be expected. Be more aggressive with FADE and REVERSAL strategies at 12318 or against the previous session high point targeting the opposing digestive support at 12246. Above the previous session high point enterying after the 2nd or 3rd press into an area is recomended over stepping in front of the initial challenge.

On the BUY side BREAKOUT strategies off 12282 or above 12318 are aggressive but do have potential if yesterday's signal was false producing a nice squeeze rally. BUY FADE strategies at 12246 are aggressive as well 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 at 12246 and 12282 are recommended off the session initial major support only, as the MKT is vulnerable to a negative trend shift and any new weakness is confirmation to yesterday's signal.

Note: The MKT has produced a big negative signal in a neutral environment. This is either the beging of a new trend move south or a press into the negative extreme which is about to snap back. Don't get tied into either opinion and let the MKT tell you what is.


JS


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Crude Oil - - Market on the Move

** NEUTRAL TRANSITION **

Technically the MKT is in a NEUTRAL TRANSITION and is flirting with a shift in sentiment. Opportunity exists on both sides with the potential for a decisive session.

85.24 is the Inflection Pivot that will gauge sentiment today. Above here the MKT will maintain a positive bias, however any longs should look to enter at or near this level as the current rise is a little ahead of itself.

A break under 85.24 and sentiment turns sour targeting 83.56 and 81.89.

JS

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Thursday, April 1, 2010

CRUDE OIL - EXTENDED

** NEUTRAL POSITIVE EXTREME **

The MKT is in a neutral digest in an underlying posiitve MKT and will need to generate a positive push today if it is to avoid falling back into a corrective trade.

The 83.88 Inflection Pivot is the low point for any corrective pull back if the underlying tone is going to remain firm. A break under this support level is a signal of a sentiment shift.

On the Sell side REVERSAL strategies off major inflection points will work best as any unsustained positive signal is expected to provide a sharp negative reaction. FADE strategies off the initial major resistance inflection pivots are valid but will work better after the 2nd or 3rd press into an area. BREAKOUT strategies are a lower probability and should be used as a signal for a FADE strategy against Directional reisstance.

On the Buy side FADE and REVERSAL strategies are recommended off support inflections, especially if the previous session low point remains intact. BREAKOUT strategies should hold structure after a resistance breach if they are going to follow through. Any break in momentum and the market will be vulnerable to drop back into a digestive trade.

Note: The MKT has stalled and may need a session or two to catch its breath or it already has. Keep an open mind and let the MKT tell you was is.


JS

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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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