Trade Strategy 02.17.15

Markets were closed Monday for President’s Day Holiday…Yesterday was also Cycle Day 1 (CD1) and price did produce a small decline during the shortened Globex Session. Price found support within the Three-Day Central Pivot Zone which overlapped with STATX Zone above 2083.00 handle. We’ll mark this level as “Key Support” on any retest.

Today is Cycle Day 2 (CD2)…Having probed low and find responsive buying at 2083 level, price has bounced back in pre-market trade near to recent high 2093.75. Momentum remains in place from last week as large institutional buying dominates the trading landscape.

Odds of Rally > 10 = 83%; Odds of Rally > 20 = 45%; Average Range on CD3 = 14.50; Max Average Range = 22.50; Possible High = 21.08.50 based upon average penetration of CD1 high. Possible Low = 2071.50 based upon max average range 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: IF price can Clear and Convert (C&C) PDH (2093.75), THEN there is a 50 % chance of expanding range to 2098.50, followed by 2102.50 average expansion on CD2. Above this level measures 2106 – 2108.50.

Scenario 2: Failure to convert PDH (2093.75) keeps price within 10 handle range (2083 – 2093). Violation and conversion of 2083.00 targets 2077.50 – 2075 zone. Below this zone measure max average range value down to 2071.50.

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 Four
I am at ease with controlled risk. I will risk and I will win. I am courageous. I will take a chance. I manage risk to my comfort level. Risk keeps me on my toes, keeps me alert and at the top of my game.

Leave a Reply