Trade Strategy 05.21.15

Price probed lower in prior session to test CD1 low, which held, then probed higher only to fail at projected upside resistance outlined in prior DTS 05.20.15. Here is excerpt: “IF price can hold above PL (2121.25), THEN clear and convert 2126.50, upside projects 2128.25…2131.25…”  Sellers stepped in very swiftly to reject the higher price probe and has now pushed price lower in overnight trade to test the 2118 – 2116 zone outlined as well in prior report…Here is excerpt: “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”.

Today is Cycle Day 3 (CD3)…Odds of 3D Cyle Rally > 10 = 82%; Odds of 3D Cycle Rally > 20 = 54%; Average Range = 17.75; Max Average Range = 21.50; Possible HOD = 2132.50; Possible LOD = 2114.50.

***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 clear and convert PL (2119.25), THEN there are even odds of returning back to 2124.50  – 2126.50 zone. Conversion above this zone increase odds (76%) of pushing higher to 2128.50, then 2132.50 TargetMaster Range Breakout Target.

Scenario 2: Failure to convert PL (2119.25) and subsequent violation of 2115.00 opens door for deeper downside decline initially targeting 2113.00, followed by 2109.25 – 2107.50 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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