Trade Strategy 04.13.15

Last week was positive for the Bulls…Following a few day consolidation price pushed higher to end the week strong. With a decent tailwind favoring the Bulls further gains appear likely as this week begins. Just a reminder that this week is Options Expiration with Puts outnumbering Calls 2:1…Volatility Index (VIX) is currently at 12.58 indicating investors back to a more complacent attitude as First Quarter Earnings release kick into gear this week.

Today is Cycle Day 2 (CD2)…Odds of Rally > 10 = 83%; Odds of Rally > 20 = 45%; Average Range = 14.50; Max Average Range = 22.50; Possible High = 2105.50 based upon average penetration of CD1 high; Possible Low = 2072 based upon average violation of CD1 low.

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

TMXZ 04.13.15

Today’s Hypotheses: June (M) Contract

Scenario 1: IF price clears and converts PH (2096.00), THEN there is a 65% chance of extending to 2098.50 – 2100.00 STATX Zone. Clearing this zone expands range targeting 2104.- 2106 with TargetMaster Range Breakout Level 2111.50.

Scenario 2: Failure to convert PH (2096.00), suggests pullback consolidation to absorb recent price gains. Initial support zone 2089.75 – 2191.75 Central Pivot. Violation of this zone calls for deeper downside to attract renewed buy response. Levels to be mindful of should this unfold are 2085.25 – 2083.00 zone (PL), then 2082.00 – 2079.25 Three-Day Central Pivot and TargetMaster Range Breakdown 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

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



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