Trade Strategy 02.12.15

S&P e-mini (ES) reached projected HOD price target 2075 in after hours trade yesterday. Geo-political news flow overnight was catalyst for HFT’s to push price down briskly by 18 handles, only to vault price back higher 18 handles to 2075, where price is currently trading in pre-market. So with headline-algos turned-on, be extra disciplined during session trade.

Today is Cycle Day 2 (CD2)…Price successfully probed lower for a new “secure low” from which to begin current cycle rally. Price has already reached target 2075, so today may be somewhat confused choppy trade with external news flow.

Odds of Rally > 20 = 83%; Odds of Rally > 20 = 45%; Average Range on CD2 = 14.50; Max Average Range = 22.50; Possible High = 2085 STATX; Possible Low = 2056.50 3D CPZ

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

Today’s Hypotheses:

Scenario 1: News flow is whipping price around in overnight trade…Price will need to find solid support above PDH (2069.75) for continued rally…Upside price targets 2078 handle, then 2082.00 – 2085 STATX Zone.

Scenario 2: Excess high is currently marked at 2078 handle…Failure to continue bullish momentum above this level increase odds of deep pullback within the current 20 handle overnight range. Key levels to be mindful of are 2068.75 – 2066.50 CPZ..2065.00, 2058.25 – 2054.75 3D CPZ.

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 Two
I am detached from the results. I think in terms of the process and the validity of the process. I understand that I am more than the trading. I do not tie a fragile ego to any day’s trading results. I have faith that over time I will make money. The results of any one trade are statistically unimportant. I think in term of probability. A single trade says nothing about me as a person.

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