AUDUSD Forex - CORRECTIVE SIGNAL

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 as long as the MKT is above the 8895 Inflection Pivot its just an opportunity to get back on the positive momentum.


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


* ENTRY STRATEGY - 5min web video explaining FADE, BREAKOUT and REVERSAL strategies http://www.jsservices.com/education/sbt/CME_EntryStrategies5min.wmv .

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CRUDE OIL Futures - CORRECTIVE

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 contract will remain vulnerable to further losses with all trading below the 78.26 Inflection Pivot.



On the SELL side avoid FADE strategies against 78.26 and 77.49 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 below 76.72 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 off the 76.72 support pivot, which should have at least 1 if not 2 challenges to the support integrity before executing a long off it. BREAKOUT strategies above 78.26 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


* ENTRY STRATEGY - 5min web video explaining FADE, BREAKOUT and REVERSAL strategies http://www.jsservices.com/education/sbt/CME_EntryStrategies5min.wmv  .

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CORN Futures - VULNERABLE

Technically the MKT is in a BEAR TREND ACCELERATION position and is vulnerable to the offer. Any positive corrective action below the 388-0 Inflection Pivot is expected to be short lived with only one upside "stop squeeze" if the negative moemtnum is going to play out. Any held strength and repeated probe higher 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. BREAKOUT strategies below 374-4 should just "go", so do not risk much. FADE strategies are recommended over REVERSAL at 388-0 strategies as the MKT is expected to hold lower structure and any momentum shift should be considered a potential positive corrective turn. REVERSAL strategies can be used at the 383-4 resisrance pivot as well as FADEs.

On the BUY side avoid REVERSAL strategies off major support levels as these signals are more likely short squeeze rallies and opportunities to SELL into and FADE. BREAKOUT strategies above 388-0 long shot, so risk less and go for more. Any BUY FADE off the 374-4 support pivot 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

* ENTRY STRATEGY - 5min web video explaining FADE, BREAKOUT and REVERSAL strategies http://www.jsservices.com/education/sbt/CME_EntryStrategies5min.wmv  .

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GBPUSD FOREX - POSITIVE SIGNAL NEEDS CONFIRMATION

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.

Key off the 15245 Inflection Pivot today for a clue to the session tone. Above here the positive signal is in play. Below here and a soft sideways trade is the expectation.


On the SELL side REVERSAL strategies can be executed off 15322 or near the previous session high point. 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 or near this inflection point on the initial test with tight profit target objectives. If the MKT has already had a reaction off this resistance area avoid this strategy. Use BREAKOUT strategies under 15206 as a signal to FADE a positive pull-back against 15245 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 15322 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 are recommended off the 15206 support pivot 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


* ENTRY STRATEGY - 5min web video explaining FADE, BREAKOUT and REVERSAL strategies http://www.jsservices.com/education/sbt/CME_EntryStrategies5min.wmv  .

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NASDAQ 100 INDEX Futures - LOOKING FOR LOVE

Technically the MKT is in a NEUTRAL TRANSITION with the potential for a positive turn. Opportunity exists on both sides however there is a better chance of acceleration to the upside if the integrity of the previous session low remains intact.

Key off the the 1818 Inflection Pivot for an indication of the session bias. A held trade above here keeps the positive opportunity in play.

On the SELL side avoid FADE strategies until after the previous session low point or major support has been broken to confirm a shift in momentum. Until then a better opportunity will be a REVERSAL strategy at the 1864.50 resistance pivot. This is a one shot trade using a low risk big profit target criteria. The idea is that the transition trade is over and a negative shift back into a NEUTRAL DIGESTION is expected. SELL BREAKOUT strategies below 1818 can be profitable but they are aggressive and should use the same aggressive position management as a REVERSAL. Risk less go for more.

On the BUY side accept BREAKOUT, FADE and REVERSAL strategies with the expectation that the current negative to positive transition will continue. Keep aggressive position management on BREAKOUT strategies off 1841.25 and 1864.50 as the MKT is still in the neutral zone and has yet to commit to a new trend. A more conservative strategy would be to wait for negative reactions after a positive signal to FADE at 1841.25 or 1818. The trade should be fluid with the MKT immediately taking back lost ground after any downside squeeze.

Note: The MKT is trying to shift from a negative to a positive trend position. False starts and stops should be expected and position management adjustment anticipated, as quick momentum turns are the norm in this technical environment.

JS


* ENTRY STRATEGY - 5min web video explaining FADE, BREAKOUT and REVERSAL strategies http://www.jsservices.com/education/sbt/CME_EntryStrategies5min.wmv  .

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DEC'10 CORN Futures- CORRECTIVE

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


Key off the 395-4 Inflection Pivot for an indication of the session tone. A held trade above here keeps the MKT's legs under it and the underlying positive momentum intact. A held failure here and sentiment turns sour with further corrective action expected. A break under 390-2 confirms this outlook.
On the SELL side avoid FADE strategies against 400-6 until after the previous session low point or major support level has been broken to confirm a negative shift in momentum. Until then a better opportunity will be a REVERSAL strategy but only off the 1st major resistance level. This is a one shot trade using a low risk big profit target criteria. The idea is that if the MKT is going to follow through on its negative signal any strength is just a "head fake " before it follows through. SELL BREAKOUT strategies below 390-2 can be profitable but they are aggressive and should look to take profits and potentially REVERSE long at support targets. The trade is corrective and the underlying positive tone must be respected.

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 off the 390-2 support pivot, which should have at least 1 if not 2 challenges to the support integrity before executing a long off it. BREAKOUT strategies above 400-6 can risk a little more if current events and other MKTs of confluence confirm a positive posture with the expectation that the Bull Trend is going to resume. If not a better approach would be to FADE a negative "squeeze" reaction off the 395-4 Inflection Pivot after a positive breakout signal as the neutral technical position can keep the trend sideways.

Note: The MKT is in a corrective position with the potential to move in either direction. Keep your opinions to themselves and focus on what the MKT is telling you it wants to do. Don't fight it, roll with it.


JS

* ENTRY STRATEGY - 5min web video explaining FADE, BREAKOUT and REVERSAL strategies http://www.jsservices.com/education/sbt/CME_EntryStrategies5min.wmv .


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EUREX - BUND Futures - PROVE IT

Technically the MKT is in a DIGESTIVE BULL TREND and is flirting with a shift into a more aggressive positive position. Look for excuses to get long but respect the digestive nature and avoid pressing any position.

Key off the 12955 Inflection Pivot for the confirmation or denial of this forecast. Above here the positive momentum stays in command targeting 12986 and 13036. A rejection and the MKT will be back down at 12892 in no time, if not worse.

On the SELL side avoid FADE strategies and use a REVERSAL instead at 12955. The MKT is excited but has yet to confirm any new advance. Expectations are that any false positive breakout signal will be met with a sharp negative reaction. BREAKOUT strategies below 12892 are a lower probability but are valid and in line with a reversal scenario. If the MKT has already produced a false positive signal and is holding negative reversal structure, this strategy has potential. Expectations are that any negative BREAKOUT should just go and with the MKT staying under pressure into the close and expanding the digestive range. Anticipate a positive turn and consider reversing off lower support structure.

On the BUY side accept FADE, BREAKOUT and REVERSAL strategies. BREAKOUT strategies above 12955 have the potential to run. If so, they will just "go" and not look back. Any stop and go action and any profits should be realized as it is more likely the MKT will be setting up a re-test of support to FADE off 12923 before it can extend higher. FADE and REVERSAL strategies should work off the 12892 support pivot and only provide one opportunity. Repeated tests or base building and it is more likely the MKT is going to search for its lower digestive extreme rather than resume a positive course.

Note: The MKT has produced a positive signal but is not confirmed. Be ready for it but if it does not materialize, beware of a negative reaction. Don't get caught fading a break that continues to hold structure as the MKT may be defining its lower digestive extreme and will most likely find it after it hits your last sell stop.

JS

* ENTRY STRATEGY - 5min web video explaining FADE, BREAKOUT and REVERSAL strategies http://www.jsservices.com/education/sbt/CME_EntryStrategies5min.wmv .

To learn more about JS Services Strategy Based Trading approach please contact me at info@jsservices.com. You can also visit http://www.jsservices.com/ and sign up for a Complimentary FREE Trial.