Trade Strategy 01.27.15

Early push lower in yesterday’s pre-market found potentially a “secure-low” at 3D CPZ 2026 – 2030 level…During Pit Session price pushed higher throughout the day settling at HOD. Overnight trade Tuesday has price lower by 12 handles with expectation of Gap Open Lower…This pullback is within context of prior day’s range and is normal trade action.

Today is Cycle Day 2 (CD2)…Having potentially found a “secure-low” in prior session and subsequent rally all within same session, price has probably gone too far, too fast and may need some “back n fill” trade to absorb recent trade.

Odds of Rally > 10 = 83%; Odds of Rally > 20 = 44%; Average Range on CD2 = 14.50; Max Average Range = 22.50; Possible High = 2064.50 based upon average penetration of CD1 high; Possible Low = 2032 based upon average pullback on CD2.

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

Today’s Hypotheses:

Scenario 1: With strong rally in prior session, most of buy-side energy may have been expended too quickly…IF price can stabilize above the 2036 – 2040 3D CPZ, THEN there is a 57% chance of reaching 2048 – 2050.25 average rally on CD2…Should price be able to clear and convert PDH (2054.00), THEN expansionary targets measure 2062.25 – 2064.50.

Scenario 2: Expectation is for “back n fill” consolidation of prior session rally…Initial support zone 2037 – 2039…Failure to find responsive buyers in sufficient quantity within this zone targets a full range retracement down to TargetMaster Breakdown Level 2032.00. Below this level measures PDL (2025.50)

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 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 Three
I am willing to accept loss. Losing is an integral part of the process. I know and accept that individual losses and losing periods will happen. They are endemic to trading. I do not like loss. I do not expect loss. I simply accept loss as a cost of doing business.

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