Trade Strategy 04.27.15

Bulls regained full control last week as price has cleared above highs of recent trading range. This clears the way for new contract highs in S&P following on the heals of Nasdaq and Russell 2000 price strength.

Today is Cycle Day 3 (CD3) Having closed in the upper quartile of prior days range, bullish momentum is expected to push price higher.

Odds of 3D Rally > 10 = 82%; Odds of 3D Rally > 20 = 53%; Average Range on CD3 = 17.75; Max Average Range = 21.50; Possible High = 2122.50 based upon average penetration of CD2 high; Possible Low = 2098 based upon average range on CD3.

***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: With bull momentum intact, clearing and converting PH (2114.75) increases odds (54%) of extending cycle upwards to 2118.25, then 2122.50. TargetMaster Range Breakout Level 2128.50.

Scenario 2: Having cleared PH (2114.75) in overnight trade, bulls will need to maintain bid above this level to keep momentum for higher price. Violation of PH (2114.75) during Cash Session suggests failed breakout and sets up decline into prior days range. Downside price targets 2110 – 2109.50 Central Pivot Zone…Below this zone deeper decline can occur with next target 2104.25 – 2100.75 3D CPZ. TargetMaster Range Breakdown Level 2098.00.

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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