SWISS FRANC

Today's MARKET STATE for SWISS FRANC: **BULL TREND CORRECTION**

- The MKT is holding firm but remains in a corrective posture. On the SELL side accept UP FADE signals only on the 2nd or 3rd confirmation. REVERSAL strategies should only be done off the UP or the previous session high point and will immediately work if they are going to. Keep position and risk management tight on these trades. SELL DP BREAKOUT strategies will work better as a signal for a DIR FADE with profit targets at the DP.
- On the BUY side accept REVERSAL signals off all major inflection levels, expecting the underlying positive momentum to resume. DP FADE strategies will work better with confirmation as the MKT is in a corrective state and will be probing lower looking for soft spots. Work any BUY DIR and UP BREAKOUT strategies as any positive shift in momentum has the potential to be the start of the next leg higher.

Today's PRICE MAP Performance for SF

Wrap Up
- Being cognisant of the Market State and applicable Market Strategy are two essential elements that define great traders.  Today in the SWISS FRANC futures market we had a perfect illustration of how JS Services definition of Market State can help traders maximize profits.  With an MC Value of +4, the market is still positive; however a corrective posture is in play.  With the R Level just above the UP, the analyst is telling traders that the corrective signal remains in effect below this level.  Our Market Strategy tells us to accept SELL UP FADE trades only on the 2nd or 3rd confirmation.  The market rallied a little after midnight, falling short of the UP.  It then made another attempt at the UP around 4:30 A.M, from which it failed yet again.  On the third attempt at the UP, the market failed to produce a higher move high and proved to be our 3rd confirmation signal that we were looking for.  Having been presented with our 3rd confirmation at the UP, a SELL UP FADE strategy should have been executed just after 9 A.M.  The market wasted no time in confirming that the trade was the correct one as we witnessed a dramatic sell off.  Our typical profit target is 2 major Price Map levels from our entry point which, for this trade, would have been the DP.  The market fell sharply to that level, allowing minimal time in the market and maximal profit realization.  By understanding JS Services Strategy Based Trading approach, a trader could have realized a full days work in a matter of minutes.

NASDAQ 100

Today's MARKET STATE for NASDAQ 100: **BULL TREND**

- The MKT has a firm tone and as long as the integrity of the previous session low remains intact, look for excuses to get long. On the SELL side UP FADE strategies are valid but profit targets and risk management should be tight.  REVERSAL strategies should be applied only at the UP and +c after an exhaustive signal. Use DP BREAKOUT strategies as a signal to FADE a positive reaction against the DIR. Only until the MKT breaks the positive structure are sell signals an opportunity.
- On the BUY side BREAKOUT, FADE and REVERSAL are recommended as the MKT is bid and all buy signals are valid opportunity. If stopped out at or near the low tic of a reaction and the MKT is not following through to the downside, look to re-enter using the recent squeeze low as a stop. If the MKT breaks structure, de-leverage and be more selective as the likelihood of a sideways trade is high.

Today's PRICE MAP Performance for ND

Wrap Up
- Today in the NASDAQ 100 futures market, traders using the JS Services Strategy Based Trading approach had the opportunity to net some serious gains.  With an MC Value of +7 and a BULL TREND Market State, our expectations is for a move higher, and we are looking to accept all BUY signals above the R Level.  Around 9:30 A.M., there was a big sell-off which took prices down to the DP.  Our market commentary tells us to look for any excuse to get long above the R, and this sell-off to the DP was just what we, as traders, were looking for!  A BUY DP FADE strategy executed off the DP around 10 A.M. behaved wonderfully, as the market respected that level and made a sharp move higher.  There was a bit of a pause at the DIR before prices continued their advance.  The rally lasted all the way up to the UP, our expected target for this trade, and gave us an opportunity to realize profits.  Our market commentary also tells us that SELL UP FADE strategies are also valid.  Although this is a more risky strategy in a BULL TREND market, and requires tight position management, it proved to work well in todays market.  After realizing profits from the long position, an agile trader could have covered their longs, got short from the UP and benefited from a profitable short trade back down to the DIR.

CANADIAN DOLLAR

Today's MARKET STATE for CANADIAN DOLLAR: **BULL TREND**

- The MKT has a firm tone and as long as the integrity of the previous session low remains intact, look for excuses to get long. On the SELL side UP FADE strategies are valid but profit targets and risk management should be tight.  REVERSAL strategies should be applied only at the UP and +c after an exhaustive signal. Use DP BREAKOUT strategies as a signal to FADE a positive reaction against the DIR. Only until the MKT breaks the positive structure are sell signals an opportunity.
- On the BUY side BREAKOUT, FADE and REVERSAL are recommended as the MKT is bid and all buy signals are valid opportunity. If stopped out at or near the low tic of a reaction and the MKT is not following through to the downside, look to re-enter using the recent squeeze low as a stop. If the MKT breaks structure, de-leverage and be more selective as the likelihood of a sideways trade is high.

Today's PRICE MAP Performance for CD

 

Wrap Up
- These are the days that traders using the JS Services Price Map dream of!  Today in the CANADIAN DOLLAR market, we had an MC Value of +5 and a BULL TREND Market State.  Traders coming into todays trading session are looking to get long from any major level above the R Level.  The early morning session showed some digestion above the DIR from 2 - 3 A.M., which allowed traders to get in the market at the DIR with a BUY DIR FADE strategy.  The market steadily moved higher, maintaining positive structure, and eventually crossed the UP just after 5 A.M.  This presented an opportunity for traders to add to their longs or, if they had missed the first opportunity, enter the market with a BUY UP BREAKOUT strategy.  The market traded up to the UT1, where it met resistance.  After a minor correction back to the minor level at 1.0117, the market rallied sharply all the way up to the UT2 presenting an excellent place to realize profits.  This huge move in the CANADIAN DOLLAR could have translated to huge profits for those traders utilizing JS Services Strategy Based Trading.

E-MINI RUSSELL 2000

Today's MARKET STATE for E-MINI RUSSELL 2000: **NEUTRAL DIGESTION TRANSITION**

- Technically the MKT has the potential for a positive turn. Opportunity exists on both sides, however there is a better chance of an acceleration to the upside if the integrity of the previous session low remains intact. On the SELL side avoid UP and DIR FADE strategies until after the previous session low point has been broken. Until then, a better opportunity will be a UP REVERSAL strategy. The idea is that the transition trade is over and a negative shift back into a NEUTRAL DIGESTION is expected. DP BREAKOUT strategies can be profitable but they are aggressive. Risk less, go for more.
- On the BUY side accept BREAKOUT, FADE and REVERSAL strategies with the expectation that the current positive transition will continue. Keep aggressive position management on UP BREAKOUT strategies 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 the DIR.

Today's PRICE MAP Performance for TF

Wrap Up
- The E-MINI RUSSELL 2000 Market Strategy for today's session worked perfectly.  In a NEUTRAL DIGESTION TRANSITION Market State, the market has the potential for a positive move today.  Our market commentary tells us that on the BUY side, we should wait for a negative reaction after a positive signal to FADE the DIR.  In the early session around 2:30 A.M. price action breaks out of the Critical Range by penetrating the UP.  Price continues higher and then eventually there is a sharp sell off around 8:30 A.M.  This is the negative reaction after the positive breakout signal that we are looking for to FADE the DIR.  Since the analyst has put the R Level at the DIR, this reinforces the idea that the DIR should serve as major Support and traders should look to execute a BUY DIR FADE from this level.  Price action came all the way down to the DIR, respected the level perfectly, and then rebounded back to the Minor level at 807.90.  After digesting for a bit, the market began another advance that took price through the UP.  Due to the Neutral Market Structure, position management should be tight.  After the rally failed to make a new intraday high around 10:30 A.M., the trader should have realized this as a sign of weakness, and closed their long position to minimize profit giveback.

JS Services Strategy Based Trading

The following web video provides the foundation to our Strategy Based Trading approach.

http://progressive.powerstream.net/008/00102/edu/interactive/js_services/strategy_based_trading/index.html

If you would like to sign up for a FREE TRIAL of JS Services click here.

If you have any questions, feel free to email us at: info@jsservices.com.

Good Trading!

 

 

E-MINI RUSSELL 2000

Today's MARKET STATE for E-MINI RUSSELL 2000: **BULL TREND CORRECTION**
- The MKT has produced a big negative signal against an underlying positive trend. On the SELL side accept UP FADE signals on the 1st press into the area only. REVERSAL strategies should only be done off the UP or the previous session high point and will immediately work if they are going to. Keep position and risk management tight on these trades. SELL DIR and DP BREAKOUT strategies are aggressive but do have potential to be the start of a larger corrective turn. Keep risk management tight.
- On the BUY side accept REVERSAL signals off all major inflection levels, expecting the underlying positive momentum to resume. DP FADE strategies will work better with confirmation as the MKT is in a corrective state and will be probing lower looking for soft spots. Work any BUY DIR and UP BREAKOUT strategies as any positive shift in momentum has the potential to be the start of the next leg higher. DIR FADE strategies after the UP Breakout should use greater leverage.

Today's PRICE MAP Performance for TF

 

Wrap Up
- The E-MINI RUSSELL 2000 has produced a shift in sentiment and has presented traders with a negative signal in an underlying bull market.  The R Level is at the previous sessions high and our market commentary says that if the UP is to come into play, it should be used to SELL a REVERSAL off the previous session highs.  The market rallied up through the UP, but failed to confirm the move by stopping short of the minor level at 817.20.  The market then sold off below the R had a brief pop above the R which created a LOWER high.  From here we saw an exhaustive sell off from the R.  Price action was setup perfectly for a SELL R REVERSAL strategy off the previous session highs as the price traded above the highs, reversed back below the R, and then created negative structure before hosting an exhaustive sell off.  The market plummeted from 6:30 A.M. until around 8:00, where it had a brief bounce off the DIR before continuing lower.  The market eventually found support at the DP a little after 9:00 A.M., presenting a perfect opportunity for traders to cover their short position and realize a nice profit.

EURO-BOBL

Today's MARKET STATE for EURO-BOBL: **NEUTRAL DIGESTION**

- The MKT has a slight negative bias in a difficult "choppy" trade. On the SELL side DP BREAKOUT strategies are valid but should expect a laborious trade.  UP and UT1 FADE and REVERSAL strategies are recommended but profit should be taken at initial targets. The probability is to the downside today but is not a day to press it.
- On the BUY side avoid UP BREAKOUT strategies but rather FADE a negative reaction after a positive breakout signal at the DIR. DP REVERSAL strategies are recommended over FADE strategies as "sloppy" trading conditions are expected. Any DP FADE trades should get confirmation before executing. Position management adjustments should be anticipated for all longs as sideways trading conditions can quickly erase profits.

Today's PRICE MAP Performance for BOBL

 

Wrap Up
- Today in the EURO-BOBL futures market, traders had a wonderful opportunity for some serious profits as the market performed to our expectations.  In a NEUTRAL DIGESTION market state with an MC Value of -2, the market has produced a slight negative bias in an otherwise neutral market.  However, the analyst has put the R Level (Sentiment Bias) at the DP telling the trader that any reaction down to this level, should be bought as the analyst expects the Critical Range to hold structure, and the price to reverse course, and rally from the R Level.  Our market commentary warns of a "sloppy" trading environment, and advises that traders get confirmation before executing a BUY DP FADE strategy.  The market churned around the DIR during the early session, eventually sold off to the DP, and respected this level perfectly.  The market bounced off this level and made another attempt at the DP at 4:00 A.M. This attempt failed to break below 126.80, making a HIGHER LOW and giving us confirmation for our BUY DP FADE trade.  The market immediately rallied up to the DIR, digested for a bit, and then continued higher.  Around 7:45 A.M., the market spiked and took prices all the way through the UP and eventually made it up to the UT1, where profits should have been realized, if they hadn't been earlier.  Today's performance in the EURO-BOBL serves as another illustration of the trading power of JS Services Price Map.