Trade Strategy 05.07.15

S&P e-mini (ES) has continued to extend beyond prior low (2061.25) down to STATX Zone (2060.75 – 2056.75). We will consider this move lower an excess low as long as 2057 is not violated during NY Cash Session. Odds (84%) are favorable for a snap-back rally which projects 2083.50 Average Cycle Rally Target for today’s session.

Today is Cycle Day 2 (CD2) Odds of Rally > 10 = 84%; Odds of Rally > 20 = 45%; Average Range = 14.50; Max Average Range = 22.50; Possible HOD = 2083.50 based upon average cycle rally; Possible LOD = 2056.75 based upon D-Level probe below CD1 low.

***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 holds above 2057 and THEN clears and converts PL (2061.25), there is 65% chance of hitting 2076.75 Central Pivot. Continued strength above this level measures 2083.50 Cycle Rally Target.

Scenario 2: Violation and conversion of 2057.00 potentially forces long-liquidation targeting 2053.25, then 2049.00 down to 2044 STATX 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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