Detective Joe Friday (Dragnet) said: “Just the Facts, ma’am”…We’ll re-coin by saying: “Just the Numbers, ma’am”…
Trading the financial markets is a numbers game, with a mixture of sentiment thrown in…but when we as traders stay true to the numbers, then consistency breeds profitability. As soon as we let emotions rule our decision making, then all hell breaks loose. Be true to the “facts” (numbers).
Prior Day High (PDH) 1886.25 was tested in overnight trade without penetration, so we will mark this level as initial resistance. Penetration and conversion of PDH calls for a push to 1888.00, then extending to extremes 1890 – 95 zone. Failure to convert the overnight high, suggests buyers are satisfied with recent purchases…Initial support resides at 1876 – 78 zone…Violation and conversion calls for deeper pullback/correction measuring three-day central pivot zone (3DCPZ) 1871 – 1873.50. Below this zone are statistical extremes 1868 – 1865.
We remain a “cautious-bull” at current levels with VIX at 13…Lowered volatility breeds complacency which increases the caution flag. As stated above…”staying true to the numbers” will always guide us to our destination, so as such, we continue to be opportunistic with intra-day trading.
Remain Focused…ALWAYS USE STOPS
I am courageous and I always act, even in the face of uncertainty and possible loss. Do not say, no fear. Feel the fear and act anyway. I may be frightened, but I still saddle up. I am not reckless. I act promptly in accordance with my methodology. I respect my calculations. I have a healthy respect and I balance that respect with my courage. I am an explorer. I am on a hero’s journey.