Trade Strategy 02.05.15

How do you spell volatility? How about a 25 handle “downdraft” in futures in the last few minutes of the trading session on reports of ECB revoking waivers regarding the use of Greek government debt as collateral for loans…That’s not enough you say? OK…How about a 25 handle “updraft” in futures overnight with PBoC’s 50bps RRR cut for banks. Are you sick yet? Do you want to get off this “vomit comet” amusement ride? Maybe riding the Kiddie Tea Cups is more you speed. Welcome to the New World of Algorithmic Futures Trading.

Today is Cycle Day 3 (CD3) Odds of 3D Rally > 10 = 82%; Odds of 3D Rally > 20 = 54%; Average Range on CD3 = 17.75; Max Average Range = 21.50; Possible High = 2058.00 based upon average penetration and conversion of CD2 high; Possible Low = 2017.25 based upon average violation and conversion of CD2 low.

***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 (2049.25), THEN there is a 50% chance of reaching 2052.00 TargetMaster Range Breakout Level. Above this level measures 2058.00.

Scenario 2: Failure to convert PDH (2049.25) potentially keeps price contained within a very wide range…Levels to be mindful of on pullbacks are: 2035 – 2032 CPZ Zone…2029.25 (PDL)…2021.75 3D CPZ.  Violation pf PDL (2029.25) opens the door for 2017.25 projected LOD.

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 Nine
I will identify my mistakes and learn from them. I am optimistic, realistic and honest. I will not make up stories about the good or bad things that occurred in the past or are happening now. I admit when something is not working. My optimism gives me faith and courage. I will not fall prey to blame and fear.

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