Trade Strategy 05.15.15

In Thursday’s DTS 05.14.15 we stated “Large market on close sell imbalance ($900M) was easily absorbed as price has held above prior low (2091.50) in overnight trade…Not only held, but has rallied higher testing prior high (2106.50). This is indeed bullish price action and barring any external event, expectation is now to push aggressively higher to challenge contract highs.”

In overnight trade ES futures are trading at 2122 handle…New Contract High…Continued bullish momentum forcing apparent short covering has propelled price higher above 3-Day Cycle Target and very near Penetration Target of 2125.50.

Today is Cycle Day 2 (CD2)…Odds of Rally > 10 = 83%; Odds of Rally > 20 = 45%; Average Range on CD2 = 14.75; Max Average Range = 22.50; Possible HOD = 2125.50 based upon average penetration of CD1 high; Possible LOD = 2107.50 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 clears and converts PH (2118.25), THEN upside projection is 2125.50 Penetration Level. Above this level expands to 2128.25, then 2133.75 TargetMaster Range Breakout Level.

Scenario 2: IF price violates 2114.00 level which is marked as first support, THEN deeper decline can unfold targeting 2109.25…2105.25. Key Support is marked at 2101.50 – 2098.00 3D CPZ and 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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