Trade Strategy 01.22.15

Yesterday was Cycle Day 1 (CD1) and as scripted in Scenario 2 of prior DTS 01.21.15, price probed lower to find a new “secure low” just above average decline target of 2004.00…Actual Low of Day was 2005.25. Once Mr. Market was confident in that low, price rallied the remainder of the day to reach initial cycle targets between 2027.50 – 2029.00.

Today is Cycle Day 2 (CD2)…Having reached initial cycle targets noted above, price may need a temporary break and consolidate recent gains. Here are today’s numbers the “Magic 8-Ball” is showing: Odds of Rally > 10 = 83%; Odds of Rally > 20 = 44 %; Average Range on CD2 = 14.50; Max Average Range = 22.50; Possible High = 2042.25 based upon average penetration of CD1 high; Possible Low = 1986.75 based upon average violation of CD1 low.

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

Today’s Hypotheses:

Scenario 1: Price has reached initial cycle target zone noted above (2027.50 – 2029.00)…As such, price momentum remains bullish, but may need some back n fill to absorb recent price strength…IF price can hold above 2021.75 CPZ, AND clear and convert PDH (2032.75), THEN there is a 55% chance of extending higher to reach 2038.75…2041…2042.50. Above these levels measures 2052.25 TargetMaster Breakout Level.

Scenario 2: Failure to clear and convert PDH (2032.75), suggests the needed back n fill consolidation to absorb recent strength…Initial support is 2021.75 CPZ, then 2014.75 – 2016.75 3D CPZ. Failure of a buy response in sufficient quantity as the levels targets lowers extreme levels 2008 – 2004.75 STATX Zone.

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 on 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 Twelve
I am disciplined. I behave in a way to reach my goals. I do what I intend to do. I have the intent to win through right actions. I will be patient for patterns to emerge and mature. I am decisive. I decide easily and act promptly. I act in the right way and right on time. When there is nothing to be done, I will wait.

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