Trade Strategy 02.06.15

Cycle Day 3 (CD3) Scenario 1 played out perfectly as price rallied to hit projected HOD 2058 Price Target…Actual high was 2058.75. Trade Strategy 02.05.15.

Friday begins a new Cycle Day 1 (CD1)…We should be looking for a decline…However, having closed near the highs, momentum may take the markets higher before the decline starts.

Odds of Decline > 10 = 71%; Odds of decline > 20 = 41%; Average Range = 18.75; Max Average Range = 22.00; Possible High = 2069.75 based upon penetration of CD3 high; Possible Low = 2034 based upon violation of CD3 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 closed near PDH (2058.75) with strong momentum. IF price clears and converts prior high, THEN there is a 45% chance of reaching upside penetration price targets outlined above.

Scenario 2: Failure to convert PDH (2058.75) suggests buyers have been satisfied and may need some period of consolidation to attract renewed buy response. Levels to be mindful of are 2054 – 2052 zone, then 2050 – 2048 VTMP. Violation of this zone targets PDL 2043.00. Further violation of 2043.00 targets 2034 extension level.

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 Ten
I know anything can happen, and I can handle anything that does happen. I am open minded. My thoughts and perceptions are clear. I know what to look for. I have rehearsed everything. I adapt to change. I will listen to my indicators and the patterns that emerge. I will adjust and not demand that things continue as they first started.


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