Trade Strategy 02.02.15

S&P Index continued to “flip-flop” between bull n bears all last week without any real progress…At end of week price settled near lower end of range and again has the bull’s back against the “proverbial wall”. Violation and conversion below 1982 – 80 zone could attract additional selling…Stay Tuned…

Today is Cycle day 3 (CD3)…Odds of 3D Rally > 10 = 82%; Odds of Rally > 20 = 54%; Average Range on CD3 = 17.75; Max Average Range = 21.50…Possible High = 2029; Possible Low = 1960.75

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

Today’s Hypotheses:

Scenario 1: It’s critical for price to hold above PDL (1986.25)…IF this can occur, THEN there is a 55% chance price can rally back above 1998.75…Above this level targets 2008 – 2010 zone…Additional strength measures PDH (2020.50)…Upside extension measures 2028 – 2029.

Scenario 2: Violation of PDL (1998.25) and subsequent violation of CD1 Low (1982.00) potentially induces long liquidation, whereby initial downside extension targets 1976 – 74 zone. Below this level measures 1970.75, then TargetMaster Range Breakdown Level 1960.75.

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 Six
I am at peace with uncertainty. I know there is no such thing as a sure thing. I have no particular need to be right. I understand that being perfect has no place in trading. I am flexible. I am willing to change my mind. I am alert to scenario changes. I accept the information that tells me I am on the right track or on the wrong track.

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