JS Services
03-15-2009, 02:57 PM
- The MKT is in a neutral digest in an underlying positive MKT and will need to generate a positive push today if it is to avoid falling back into a corrective trade.
- On the Sell side REVERSAL strategies off the UP and UT1 will work best as any unsustained positive signal is expected to provide a sharp negative reaction. FADE strategies off the UP are valid but will work better after the 2nd or 3rd press into an area. BREAKOUT strategies below the DP are a lower probability and should be used as a signal for a FADE strategy against the DIR.
- On the Buy side FADE and REVERSAL strategies are recommended off the DP, 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.
- On the Sell side REVERSAL strategies off the UP and UT1 will work best as any unsustained positive signal is expected to provide a sharp negative reaction. FADE strategies off the UP are valid but will work better after the 2nd or 3rd press into an area. BREAKOUT strategies below the DP are a lower probability and should be used as a signal for a FADE strategy against the DIR.
- On the Buy side FADE and REVERSAL strategies are recommended off the DP, 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.