We would like to wish everyone a Very Happy, Healthy and Prosperous New Year! May you have good fortune in all you do.
Markets have begun the new year on a weak note: European stocks are in the red, as fears over Greece’s future in the euro zone and fresh multi-year low for crude oil prices weighed on markets.
Today begins Cycle Day 1 (CD1)…Normally on CD1 we anticipate weakness as price probes for a new “secure low” from which to stage the cycle rally. Odd of Decline > 10 = 70%; Odds of Decline > 20 = 41%; Average Range = 18.75; Max Average Range = 21.75; Possible High = 2075.75 based upon clearing and converting PDH (2066.50); Possible Low = 2028.25 based upon violation and conversion of PDL (2038.75)
***Note: The odds highlighted are NOT predictions or trade recommendations, rather a guide based upon historical observed occurrences.
Scenario 1: Prior Day Low (2038.75) and Globex Low (2036.50) will mark “key support” zone for the Pit Session…IF price can hold above this zone, then there is a 55% chance of moving up to 2046 – 48 zone for first test of resistance. Successful conversion of this zone suggests bullish momentum targeting 2051 – 53 zone. Above these levels measure 2055.75, followed by TargetMaster Breakout Level 2060.75. The 3D CPZ (2061.75 – 2066.75 marks important barrier for the bulls to overcome.
Scenario 2: Should the 2036 – 38 low zone be violated and converted, long liquidation may unfold targeting 2033.25 – 2032.50, with TargetMaster Breakdown Level 2030.75. Potential Low of today = 2028.25.
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 of 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!
I am ready to trade. My patterns are verified. My homework is complete. My mind is clear. I have rehearsed everything. I am prepared strategically, emotionally, and financially each and every day.