Trade Strategy 05.13.15

Price probed lower in early trade yesterday to find a secure low at deep cycle extreme zone…Once satisfied the last seller was out, the rally began, reaching projected upper target zone between 2093.50 – 2095.75, ultimately achieving stated 2102 price target in overnight trade. Having reached target and above Cycle Day 1 high, price successfully completes the positive 3-Day Cycle.

Today is Cycle Day 3 (CD3)…Residual bullish momentum above PH (2101.00) has potential to reach 2108 – 2110 zone. Violation below 2098 increase odds of another decline.

Odds of 3D Rally > 10 = 82%; Odds of 3D Rally > 20 = 54%; Average Range = 17.75; Max Average Range = 21.50; Average 3D Rally = 2120.50; Possible HOD = 2108 based upon average penetration of CD2 high; Possible LOD = 2083.25 based upon average range on CD3.

***Note: The odds highlighted are NOT predictions or trade recommendations, rather a guide based upon historical observed occurrences.

Click Here

Today’s Hypotheses: June (M) Contract

Scenario 1: IF price maintains bid above prior high (2101.00), THEN upside projects 2108.50 penetration level…Above this level targets TargetMaster Range Breakout Level 2116.25.

Scenario 2: Failure to convert 2105.75 and subsequent violation of 2098 handle opens door for corrective pullback targeting 2092.25 – 2090.25 Central Pivot Zone…Below this level and price can give back entire prior day’s gains.

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


Leave a Reply