“Just The Facts, Ma’am”

We continually hear and read daily from pundits that give their opinion on why markets are going up and why markets are going down…In an age of abundant information, it’s hard to decipher what Bits and Bytes are relevant. Majority of so-called “experts” are doing nothing to help YOU make money. We all seek truthful, honest, straightforward information in order to help us make well-informed decisions. As Joe Friday always said…“Just the Facts, Ma’am”.

Fact: Price and Volume Never Lie…Why is this fact? Because real traders/investors speak with their pocketbook not theirs mouths…So turn off the TV and close the Blogs…Focus on what price and volume are saying…Become a “Market Whisperer”.

Overnight trade continues lower by 8.75 handles as of 8 am…Price is current below Prior Day Low (1907.50) and the Cycle Day 1 Low (1914.75). Today is Cycle Day 3 (CD3)…Odds favor price getting back above CD1 Low (1914.75).

Cycle Day 3 Average Range = 17.75  Max Range = 21.25  Odds of Rally > 10 – 82%; Odds of Rally > 20 = 54%

Scenario 1: Price is current below PDL (1907.75)…IF price can get back above and hold, THEN odds favor a move back to CD1 Low (1914.75). Above this level targets 1916.5 – 18.50 zone…Three-Day CPZ at 1922.00.

Scenario 2: Failure to recapture prior lows stated above, suggests weakness and unwillingness on part of bulls to find acceptable value at current levels. Initial levels to watch for buy response is 1905.75 – 1902.50 zone. If buyers fail to respond, then probe for lower acceptable value is necessary…Lower levels to be mindful for are 1897.25 – 1895.30 which is the TargetMaster Breakout Target.

Focus on the Trading Process…Not the Outcome  ALWAYS USE STOPS!

Good Trading…David

Habitude Two
I am detached from the results. I think in terms of the process and the validity of the process. I understand that I am more than the trading. I do not tie a fragile ego to any day’s trading results. I have faith that over time I will make money. The results of any one trade are statistically unimportant. I think in term of probability. A single trade says nothing about me as a person.



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