Trade Strategy 01.09.15

Yesterday’s cash session opened with a “gap n go” never looking back with barely a pullback to allow for favorable entry point. These type openings can be most frustrating to disciplined “pullback” traders, since aggressive short covers are simply paying consecutive offering side market prices. What’s the solution? Remain disciplined to your trade plan and be patient for “your” trade setup.

Prior Session High is 2058.50, which was exactly the top edge of STATX Zone..This marks the most extreme level we calculate on a daily basis. This level will now become a “key resistance marker” on subsequent retest of high.

Today is Cycle Day 2 (CD2)…Cycle Targets have all been exceeded with yesterday’s strong momentum move higher, which may make for choppy trade. Average Range on CD2 = 14.50; Max Average Range = 22.50; Possible High = 2068 based upon clearing PDH (2058.50); Possible Low = 2027.75

***Note: The odds highlighted are NOT predictions or trade recommendations, rather a guide based upon historical observed occurrences.

Today’s Hypotheses:

Scenario 1: IF price clears and converts PDH (2058.50), THEN there is a 55% chance of extending upwards to 2063.50 – 2068.75 STATX Zone.

Scenario 2: Having hit an extreme high in prior session (2058.50)…Failure to clear and convert this level suggests some back n fill is required to work off excess and find responsive buyers. Should a pullback into prior session range develop, levels to be mindful of for support are: 2050 – 2048 zone, followed by 2044- 2042 zone. Should these zones fail to illicit a strong buy response, additional lower levels measure 2036.50 down to 2032.50.

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!

Good Trading…David

Habitude Five
I think in terms of probabilities. I do not know, all I have are probabilities. Probabilities are at the core of my decisions. Through consistent application of the probabilities, I will win.


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