Today's MARKET STATE for S&P 500 INDEX: **BULL TREND ACCELERATION EXTREME**
- Technically the MKT has produced a big positive technical shift signal and will need to hold structure if it is going to avoid a drop back into a digestive trade. On the SELL side UP FADE signals are valid but REVERSALS are a better option. Use resting profit limits and tight stops. DIR and DP BREAKOUT strategies are aggressive but do have the potential to profit from a quick negative move out of the extreme. Use tight position management as any unrealized profits can be erased quickly.
- On the BUY side accept DP FADE signals after confirmation. The MKT is extended and may search for stops before it resumes its Bull move. REVERSAL strategies are a better option. The sharper the break, the better for an entry with the expectations that the MKT is going to revisit the recent move high. BUY DIR and UP BREAKOUT strategies may need to be "worked" as the MKT is extended and has the potential to produce some starts and stops.
Today's PRICE MAP Performance for SP
Wrap Up
- In a relatively quiet day in the markets, there was still opportunity to realize profits in the S&P 500. The market has produced a huge positive signal and will need to hold structure if the shift in sentiment is to be accepted. By putting the R at the DIR, the analyst is saying "prove it" to this positive technical shift. If price breaks below the DIR, there is a possibility for a drop back down into a digestive market state. The Market traded down to the DIR around 8 A.M., respected it, and began back up toward the minor level at 1437.75. When the price failed to make a higher move high around 12:30, this was an indication of structural weakness. When the price broke below the R just before 2 P.M., we knew just what to do, SELL the DIR BREAKOUT. This strategy is aggressive and demands tight position management. As it happened, there was a sharp sell-off from the R and wasted no time before moving down to the DP, a reasonable profit target considering the Market State and time of day.
Today's MARKET STATE for EURO CURRENCY: **BULL TREND CORRECTION**
- The MKT has a soft tone against an underlying positive trend. On the SELL side accept UP FADE signals on the 1st or 2nd 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 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 EU
Wrap Up
- Today we had a CORRECTIVE signal in an underlying BULL TREND Market. With the R Level at the DIR, we are looking to accept BUY signals above that level with the expectation that a breakout of the Critical Range could be a resumption of the bull trend. At 2:30 A.M., we are given out BREAKOUT signal as the market penetrated the UP. If a trader hadn't gotten long the market at this point, they should have definitely been long the market after the UP held support just after 4 A.M. The market continued higher throughout the morning session, had a brief pullback at the UT1, then hosted a fierce rally taking price all the way up to our target at the UT2 where profits should have been realized. Price had a brief correction, similar to the one seen at the UT1, and then continued through the UT2 making it all the way up to the second minor level above the UT2 at 1.2814. Defining Market State, Structure, and Strategy proved to be a profitable formula for trading the EURO CURRENCY today.
Today's MARKET STATE for S&P 500 INDEX: **NEUTRAL DIGESTION**
- Technically the MKT is "on the fence" with the potential to go in either direction or nowhere. Pick your points and have no expectations, as the likelihood of this MKT trading sideways is high.
- On the SELL side BREAKOUT, FADE and REVERSAL strategies are valid, however profit and position risk management should be aggressive and anticipated. The pivotal nature of the session does have the potential to be the starting point for a new move. However, the probability of any trend action is more likely to just be the MKT defining its new consolidation extreme.
- On the BUY side BREAKOUT, FADE and REVERSAL strategies are valid, however profit and position risk management should be aggressive and anticipated. The MKT is "on the fence" and does have the potential to be the beginning of a new trend move. The probability of a new trend move is low. However, any price trend action is more likely to just be the MKT defining its new consolidation extremes.
Today's PRICE MAP Performance for SP
Wrap Up
- With an MC Value of +1 and a NEUTRAL DIGESTION Market State, the S&P 500 INDEX was on the fence today with the potential to start a new trend move. As the day progressed, you could almost feel the market trying to breakout of the Critical Range and start a new move higher. We had a test of the UP around 4 A.M, a little after 5:30, at 7:30, and again around 8 A.M. Then, just after 8:30 A.M., we are given a decisive breakout signal, allowing traders to execute a BUY UP BREAKOUT strategy. The market rallied sharply stabilized for a minute at the UT1, and then proceeded to rally all the way up to our upside target for the trade, the UT2. Defining Market Structure everyday is essential to being a profitable trader. Today's Price Map performance illustrates how defining Market Structure will translate to profitable trade execution.
Today's MARKET STATE for BRITISH POUND: **BULL TREND**
- Technically the MKT is in a positive posture and as long as it continues to hold structure, further gains should be expected. If 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 BP
Wrap Up
- For the second day in a row, we have a BULL TREND Market State performing EXACTLY to expectations. Today in the BRITISH POUND currency, we had a MC Value of +5 and a BULL TREND Market State. Our stategy in todays trading environment is to accept all BUY signals off major inflection points, with the best risk-reward trade being a BUY R FADE strategy. The R Level is placed by an analyst and represents the level above which traders should BUY the market, and below which traders should look to SELL the market. Around 3:00 A.M. the market sold off dramatically, stabalized just above the R around 1.5823 and then rallied violently. Using the JS Price Map, a trader would have executed a BUY R FADE strategy just after 3 A.M. The market performed to our expectations, respected the R Level, and rallied for the next 4 hours. Price blew through the DIR, surpassed the UP (our target), and eventually made it all the way up to the UT1. Profits could have been realized at our profit target at the UP; however, had a trader stayed in the position after the UP was achieved, he or she would have been rewarded hansomely as the market traded up to the UT1 just after 7 A.M.
Today's MARKET STATE for E-MINI RUSSELL 2000: **BULL TREND**
- Technically the MKT is in a positive posture and as long as it continues to hold structure, further gains should be expected. If 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 TF
Wrap Up
- A picture says 1,000 words...especially in the E-MINI RUSSELL 2000 market today! Today's Price Map performance in the TF market highlights the importance of Strategy Based Trading, and how profitable it can be! First, we define Market Structure. The Price Map identifies key levels for the day, the most important being the R Level, the level at which we are looking to buy above, and sell below. Second, we consider Market State. The MC Value of +6 and the BULL TREND Market State tell us we are looking to BUY the market today. Finally, we have Market Strategy. Our market commentary tells us that we are to accept ALL BUY, FADE, and REVERSAL strategies off major levels, as long as the positive sentiment remains intact. As a trader, our highest Risk/Reward trade is a BUY R FADE with the expectation that the R Level is the "breaking point" for the positive structure. As it played out, at 10 A.M. the market touched the R Level at 805.10 and gave us a prime opportunity to enter the market on the long side. This trade turned profitable immediately, moving steadily through the DP, and then accelerating through the DIR and UP! The market traded as high as the minor level above the UP, 823.10, and proved to be an extraordinarily profitable day made possible by JS Services Strategy Based Trading approach.
Today's MARKET STATE for AUSTRALIAN DOLLAR: **NEUTRAL DIGESTION**
- The MKT is in a digestive position with a negative technical bias. On the SELL side accept FADE, BREAKOUT and REVERSAL strategies off major inflection points. DP SELL BREAKOUT strategies should just "go" and not look back. DIR FADE strategies after a negative breakdown signal are good opportunities as well. If the trade just "hangs around" after a breakdown signal, it is likely that more digestive action is to come. Be more aggressive with UP FADE and REVERSAL strategies and resistance inflection points at or against the previous session high point.
- On the BUY side DIR and UP BREAKOUT strategies are aggressive and should hold structure if they are good. DP BUY FADE strategies are aggressive and if they are going to work should do so on the initial test of support. Repeated tests are more likely to give way to a lower trade. BUY REVERSAL strategies are recommended off the DP only, as the MKT is vulnerable to a negative trend shift. The probability is to the downside today so don't get stubborn buying breaks.
Today's PRICE MAP Performance for DA
Wrap Up
- Today we had an MC Value of -2 in a NEUTRAL DIGESTION Market State. Although there is a NEGATIVE technical bias, the analyst felt that the DIR was the most important technical level, the "breaking point" if you will. If the R Level remains unbroken, this is a positive sign that market structure is holding, and a move higher is expected. The market moved higher throughout the morning session. In a Neutral market state, our expectation for a follow through on a move is low. As the price approached the UT1 just before 8 A.M., traders could have been looking for a corrective move as the expectation is for a sideways trading market. As it happened, a sharp corrective sell off ensued and took prices all the way down to the DIR, where that level held structure. The fact that the sell off was halted and respected the R Level signals the trader that now is the opportunity to get long with a BUY DIR FADE strategy. This trade wasted no time in turning profitable, as the price rallied right back up to the UT1 at 10:30 when profits should have been realized.
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.
