Trade Strategy 04.07.15

Short covering rally following shortened trading week drove price higher 37 handles in Monday’s Session. Bulls took full advantage of low participation rate “thin to win” to squeeze the shorts. Overnight trade continues to have bid, with price currently at highs (2079).

Today begins new Cycle (CD1)…Strong momentum and shallow pullback in overnight trade may produce a higher opening which could propel price higher before a corrective decline.

Odds of Decline > 10 = 71%; Odds of Decline > 20 = 41%; Average Range = 18.75; Max Average Range = 22.00; Possible High = 2091.75; Possible Low = 2058.50

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

TMXZ 04.07.15


Today’s Hypotheses: June (M) Contract

Scenario 1: Shallow decline in overnight trade found support at  2070 handle. IF price can stay above this level, THEN expectation is for PH (2080.00) to get penetrated. IF Converted, THEN upside expansion targets 2084.25 – 2089 STATX Zone.

Scenario 2: Today is CD1 and normally we would expect some type of decline during the session…Currently the decline from CD3 high has been shallow. IF price fails to convert PH (2080.00) and subsequently violates ONL (2070), THEN deeper decline is anticipated to develop. Downside levels to be mindful of are: 2064.75 – 2063.50 CPZ…followed by 2059.50 – 2058.55, then 3D CPZ 2056.50 – 2055.00.

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

“Knowing is not enough, We must APPLY. Willing is not enough, We must DO. – Bruce Lee

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