Trade Strategy 06.15.15

Traders were greeted with a sea of red on Monday after debt discussions between Greece and its European creditors collapsed, pushing Athens closer to a debt default that threatens its future in the eurozone. With both sides refusing to soften their long-held bargaining positions, talks on Sunday broke down after just 45 minutes. Many officials now see a Eurogroup meeting on June 18 as the last chance for Greece to secure a deal on an agreed list of the economic reforms.

Same Ole Story, Same Ole Song and Dance…Aerosmith

Price is currently trading below CD1 Low in pre-market action as probing for secure low continues to unfold. The larger degree picture continues to show signs of weakness as investors / traders have turned more cautious.

Today is Cycle Day 2 (CD2)…Odds of Rally > 10 = 83%; Odds of Rally > 20 = 45%; Average Range = 14.50; Max Average Range = 22.50; Possible HOD = 2110.50 based upon penetration of CD1 high; Possible LOD = 2072.50 based upon max average range on CD2.

***Note: The odds highlighted are NOT predictions or trade recommendations, rather a guide based upon historical observed occurrences.

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Today’s Hypotheses: July (U) Contract

Scenario 1: Price is currently below CD1 low (2082.00)…Price will need to clear and convert this level for any chance of a rally attempt…IF price converts this level, THEN initial upside targets 2086.50, followed by 2089.25…Strength above this level measures 2093.00 – 2094.50 3D CPZ.

Scenario 2: Failure to convert CD1 low (2082) keeps further downside pressure in bear camp targeting 2072 (Max Avg Range), followed by 2071 (Low Violation Target). Below this level selling acceleration targets 2064.50 – 2062.75 TargetMaster Range Breakdown Level, with Statistical Extreme measuring 2057.75.

Trade Strategy: Our tactical trade strategy will simply remain unaltered…We’ll be flexible to trade both long and short side from Decision Pivot Levels. Continue to focus on Bull/Bear Stackers and Premium/Discounts. As always, remaining in alignment with dominant intra-day force increases probabilities of producing winning trades.

Stay Focused…Non-Biased…Disciplined  ALWAYS USE STOPS!

Good Trading…David

“Knowing is not enough, We must APPLY. Willing is not enough, We must DO.” –Bruce Lee



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