Running of the Bulls

The “Running of the Bulls” (encierro) is a practice that involves running in front of a small group of bulls. Youngsters would jump among them to show off their bravado in Pampiona, Spain. Usually some, or even many would get trampled to death or gored by a bulls sharply pointed horn. This of course is a high risk-no reward activity, only for the bravest or perhaps the most stupid.

This is most analogous to market activity where the bulls and bears are in a constant battle for control. When the bulls are running, it’s best to stay out of their path, since it is high-risk, low-reward activity to be shorting (youngsters (traders) jumping among theme to show their bravado). It might be best to be running “with” the bulls, rather than jump in front of them…You Decide!

Strong Trend Day yesterday began with an ” Bull Open Drive”…which is when price gaps above prior days high and holds the open range average, then continues to find aggressive buyers at higher prices…hence, “Running of the Bulls”. Typically the day after trend day price action tends to pause to catch its breath in range type trade.

Scenario 1: If price can penetrate and convert PDH (1971.75) THEN there is an 82% chance of price reaching 1973.00 – 1975.00 STAT-Xtreme Zone and a 65% chance of reaching penetration target of 1977.25 – 1978.50 zone.

Scenario 2: Failure to exceed PDH (1971.75), suggests consolidation and absorption of prior days rally. Initial support is marked between 1963.00 – 1965.00 which is prior session VTMP. Violation of this zone and deeper retracement to 1961.00 – 1959.00 zone.

Trade Strategy: Bulls reasserted their strength yesterday, and as such, we will defer to buying pullbacks to key support zones, with expectation of consolidation range trade developing. There are a number of economic reports to be released with the shortened holiday week, so anything can happen, but we trade the probabilities.

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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