Trade Strategy 04.16.15

Strong and persistent buying was yesterday’s call with a “Gap n Go” that held above Open Range early ultimately reaching our projected upside target between 2103 – 2104.25 outlined in prior DTS Report 04.15.15.

Overnight and early morning trade has failed to produce higher high and as such, price is currently trading down 10 handles as of 6:30 am ET. Initial downside retracement target is 2091 handle, which is the “average range” on Cycle Day 2.

Today is Cycle Day 2…Average Range = 14.50; Max Average Range = 22.50; Possible High = 2114.25 based upon clear and convert PH (2105.50); Possible Low = 2083.00 based upon max average range observed on CD2.

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

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Today’s Hypotheses: June (M) Contract

Scenario 1: IF Price clears and converts PH (2105.50), THEN odds (65%) favor extension 2107.50 – 2109.50 STATX Zone. Above this zone targets 2114.50.

Scenario 2: The decline that normally occurs on Cycle Day 1 looks to be unfolding today instead following strong momentum rise in prior session. Currently price has failed to convert PH (2105.50), and as such, retracement decline has begun. Initial downside target is Three-Day Central Pivot Zone between 2093.25 – 2091.25. Should this zone fail to find responsive buyers, then further downside targets 2088.75 – 2087.25 TargetMaster STATX Zone. Violation of PL (2087.25) targets 2078.75 – 2076.25 zone.

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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