Trade Strategy 05.20.15

Perfect Cycle Day 1 (CD1) unfolded yesterday as price auctioned lower in search of new low at 2121.25. Price has held above this level in overnight trade, so if this level is indeed the new “secure low”, then it should not be violated during cash trade session. The current range is between 2122.00 – 2126.50…breakout of either level will determine continuation of bull pattern or reversal lower.

Today is Cycle Day 2 (CD2); Odds of Rally . 10 = 85%; Odds of Rally > 20 = 45%; Average Range = 14.75; Max Average Range = 22.50; Average Cycle Rally = 2143.50…Possible HOD = 2143.50; Possible LOD = 2111.50 based upon average violation of 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 can hold above PL (2121.25), THEN clear and convert 2126.50, upside projects 2128.25…2131.25, then PH (2134.00). IF price converts prior high, THEN upside expansion targets 2135.25 TargetMaster Range Breakout Level followed by 2141 – 2143.50 Cycle Target.

Scenario 2: Violation of PL (2121.25) opens door for deeper downside probe for new secure cycle low. Levels to be mindful of are: 2118.50…2116.25, followed by 2112.25 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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