BRITISH POUND

Today's MARKET STATE for BRITISH POUND: **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 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 BP

 

Wrap Up
- With an MC Value of -1 we have a slight negative bias on a NEUTRAL trading environment.  With the R Level at the minor target above the UP, the analyst has expanded the Critical Range and identified the minor level above the R Level to be the "breaking point" for the negative bias.  Consistant with out market commentary, we get a SELL UP REVERSAL strategy when the market fails to sustain its breakout from the UP.  Our market commentary tells us to take profits at our initial target, so profits should be realized at the DIR around 8:30 AM.

WHEAT

Today's MARKET STATE for WHEAT: **NEUTRAL DIGESTION**

-The MKT is in a sideways digestive position with a slight positive bias.

-On the SELL side avoid DP BREAKOUT strategies but rather FADE a positive reaction against the DIR after a negative breakdown signal.  UP and UT1 REVERSAL strategies are recommended over FADE strategies as “sloppy” trading conditions are expected.  Any UP FADE trades should get confirmation.

-On the BUY side UP BREAKOUT strategies 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 give-back.  DP and DT1 FADE and REVERSAL strategies are recommended.

Today's PRICE MAP Performance for W

Wrap Up
- Today in the WHEAT market, we had a NEUTRAL DIGESTION market state with a slight positive tone.  Since the analyst placed the R Level at the DIR, we know that today we are in a dynmaic market state and opportunity exists on both sides of the market.  In a NEU market state, our expectation is that trading should stay within the Critical Range so when we saw the breakdown from the DP around 8:00 AM below the R Level, we knew that this was an opportunity to execute a SELL DP BREAKOUT strategy that was in line with our sentiment bias.  In a neutral environment, position management should be tight as a choppy trading environment is expected.  Profits should have been realized at the DT1 around 10:30 AM.

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S&P 500

Today's MARKET STATE for S&P 500: **NEUTRAL DIGESTION TRANSITION**

- MKT sentiment is leaning negative and will outweigh the buy side if the integrity of the previous session high remains intact.

- On the SELL side accept BREAKOUT, FADE and REVERSAL strategies with the expectation that the current negative transition will continue.  Keep aggressive position management on DP 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 positive reactions after a negative signal to FADE the DIR.

- On the BUY side avoid DP FADE strategies until after the previous session high point has been taken out.  Until then, a better opportunity will be a DP REVERSAL strategy.  The idea is that the transition trade is over and a positive shift back into a NEUTRAL DIGESTION is expected.  UP BREAKOUT strategies can be profitable but they are aggressive.  Risk less, go for more.

Today's PRICE MAP Performance for SP

 

Wrap Up
- Today the S&P 500 market performed to market expectations and followed through on the negative transitional signal.  The R Level at the UP represented the breaking point for the negative transitional signal.  With price action failing to break above this level, the negative signal remained in play and the opportunity for the session is to the downside.  The market sold off to the DP in the overnight session signaling to traders that the markets wanted to transition lower.  After finding support at the DP around 4:00 AM, the market rallied back up to our DIR giving us an opportunity to execute a SELL DIR FADE strategy from this level around 8:45 this morning.  this proved to be the trade of the day as the market sold off sharply, digesting for a minute at the DP before transitioning down to our next major level at the DT1.

BRITISH POUND

Today's MARKET STATE for BRITISH POUND: **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 in 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 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 BP

Wrap Up
- Today in the British Pound, we have a NEUTRAL DIGESTION market state with an MC value of -2.  With the R Level at the UP, we have a confluence of signals telling us to accept sell signals below the R Level. Just before 2:00 AM we get an opportunity to execute a SELL UP FADE strategy from our R Level.  With the expectation that trading for the session will stay within the Critical Range, this is the highest risk/reward trade for the session.  The profit respected the R Level at the UP beautifully and sold off sharply throughout the morning session.  After digesting at the DIR around 6:00 AM, the market continued lower to the end of our Critical Range where it eventually found support at our DP.

DAX INDEX

Today's MARKET STATE for DAX INDEX: **NEUTRAL DIGESTION**

- The mkt IS in a sideway digestive position with a slight positive bias.
- On the SELL side avoid DP BREAKOUT strategies but rather FADE a positive reaction against the DIR after a negative breakdown signal  UP and UT1 REVERSAL strategies are recommended over FADE strategies as “sloppy” trading conditions are expected.  Any UP FADE trades should get confirmation first.
- On the BUY side UP BREAKOUT strategies 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 give-back.  DP and DT1 FADE and REVERSAL strategies are recommended.

Today's PRICE MAP Performance for DAX

Wrap Up
- Today in the DAX INDEX futures market, we had extremely choppy market action staying true to the NEUTRAL DIGESTION market state.  With an MC Value of +3, we know that there is a slight positive bias on the neutral market state, and we should look to accept buy signals ABOVE our R Level.  Around 2:00 AM, the market gives us our opportunity to enter the market with a BUY DP REVERSAL strategy as recommended by our market commentary.  Our expectation is for price action to stay within the Critical Range and position management should be tight.  The market rallied sharply up to the DIR at around 3:30 AM where it digested for the better part of the morning session.  After failing to penetrate the minor level at 7352.0 at 7:00 AM, the market began a rally that eventually made it up to the upper end of our expected trading range at the UP.

BRITISH POUND

Today's MARKET STATE for BRITISH POUND: **BULL TREND CORRECTION**

 

- The MKT has produced a 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 traded. SELL DIR and DP BREAKOUT strategies are aggressive but do have the 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 BP

Wrap Up
Today in the BRITISH POUND futures market, our Critical Range helped define the trading range for traders.  In a BULL TREND CORRECTION market state, the market has generated a corrective signal against the underlying positive trend.  Any short position taken today should use strict position management as the underlying bull trend must be respected.  After the  Around 2:00 AM we get a SELL DIR BREAKOUT strategy that is in agreement with our R Level at the UP.  As stated earlier, the underlying bull trend of the market must be respected, and profits should be taken sooner rather than later.  After entering the trader at 2:00 AM, the market attempted a retest of the DIR and failed around 3:00 AM confirming our trade.  The market then broke sharply and sold off to the DP, where profits could have been realized.  By defining the expected trading range for the day, JS traders were able to capitalize on the corrective move in the British Pound.