Trade Strategy 05.12.15

Monday’s trade in S&P 500 futures (ES) unfolded as a perfect Cycle Day 1 (CD1) as odds (71%) favored a decline of 10 handles or greater and (41%) of 20 handles or greater. Failure to convert CD3 high (2113.50) setup reversal potential…Once 2105 handle was violated late in session, the decline began in earnest which continues into pre-cash open.

Today is Cycle Day 2 (CD2); Max Average Decline (22.50) has already been exceed as price is trading deep int STATX Xtreme (2079.50); Possible HOD = 2093.50 3D CPZ; Possible LOD = 2076.50 TargetMaster Range Xtreme.

***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: Price is currently trading near range extremes…IF price can clear and convert 2086.50, THEN odds (55%) favor a retracement bounce targeting 2093.50 – 2095.75 zone. Above this zone measures 2102.00 Central Pivot.

Scenario 2: IF price fails to convert 2086.50, THEN sell pressure remains dominant with lower targets 2078 – 2076.25 zone, 2073.25 – 2071.50 CD1 Low Violation 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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