Monday’s Session could possibly have been the narrowest range of the year, though I do not have statistics confirming…but boy it was slow. Corporate earning releases have begun to flow and we have opined that money managers are less likely to make new commitments until they have evaluated these reports. Quiet bullish consolidation continues…stay tuned.
Let’s take a look at today’s trade hypotheses:
Scenario 1: Prior Day High is 1974…IF this level can be converted, THEN there is a 65% chance of reaching Cycle Price Target 1978.50…Xtreme price target 1980 – 1982.25.
Scenario 2: Failure to convert PDH keeps current consolidation intact with pullback support 1966 – 68 zone..Key Decision Point (DP) Marker is 1969.00, which is Prior Day MidPoint (PDMP).
Trade Strategy: We will continue to defer to the bull’s strength…As such, pullbacks to DP’s will be buyable for higher rotation-factor…Any failed price auction against highs will provide aggressive traders opportunities to “fade-trade”…We will remain flexible for both long and short setups.
Stay Disciplined…Follow the Rules…ALWAYS USE STOPS!
I know anything can happen, and I can handle anything that does happen. I am open minded. My thoughts and perceptions are clear. I know what to look for. I have rehearsed everything. I adapt to change. I will listen to my indicators and the patterns that emerge. I will adjust and not demand that things continue as they first started.
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS