Trade Strategy 04.23.15

Same Story…Different Day…Range Trade continues within established boundaries. Down thrusts are losing momentum as well as up thrusts. Current range has also narrowed between 2080 – 2105. Until either of those levels are decisively converted, expect more of the “same ole song and dance”.

Yesterday’s projected low 2080 hit on target as outlined in DTS 04.22.15 Scenario 2. Ensuing rally also hit projected range target of 2101.50 observed on Cycle Day 3, and as such, completed a perfect 3-Day Cycle sequence.

Today is Cycle Day 1 (CD1)…Odds of decline > 10 = 71%; Odds of decline > 20 = 41%; Average Range on CD1 = 18.75; Max Average Range = 22.00; Possible High = 2113.25 based upon average penetration of CD3 high; Possible Low = 2085.00 based upon average decline on CD1.

***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 (2103.75), THEN there is a 60% chance of reaching 2106.00 – 2108.75 STATX Zone. Above this zone expands upwards to 2113.25, then 2116.75 TargetMaster Range Breakout Target.

Scenario 2: Failure to convert PH (2103.75) increases odds (71%) of 10 handle decline..Currently overnight trade has satisfied these high odds with price trading 2092.00. IF price violates the 2092 level during cash market trade, THEN odds (45%) favor further weakness down to average range target 2085.00.

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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