Trade Strategy 05.04.15

Thursday’s sell off provided an opportunity to clear out some excesses and placement probe for this cycle’s secure low near 2075 handle which we’ll mark as “Key Support”.

S&P e-mini, having closed on high of day (HOD) with considerable momentum, has price higher in overnight trade to 2106 handle. Odds (55%) favor penetration of PH (2102.50) up to 2106 – 2108.50 STATX Zone. Part of that move is in place, so Cash Session traders will need to keep bullish price action intact.

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 = 2110.50 based upon average penetration of CD1 high; Possible Low = 2091.50 based upon average decline 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 can hold above PH (2102.50), THEN upside target is 2106 – 2108.50. Above this zone measures 2110.50 penetration level with 2112.50 marked a prior “Key Resistance”.

Scenario 2: Currently price is above PH (2102.50)…Violation of this level and subsequent break below ONL (2098.00) calls for pullback into prior day’s range targeting 2095.00 – 2093.00 3D CPZ. Average Range price target measures 2091.50. Below this level is 2088.00 , then 2083.75 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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