Trade Strategy 05.26.15

Memorial Day Weekend is a time to honor America’s bravest fallen Hero’s. They have given the ultimate sacrifice for our freedom…please consider giving back and showing that their sacrifice was not in vain by donating to Wounded Warrior Project to those that remain and struggle for survival daily.

This holiday is also the unofficial kick-off of summer and with lowering trade volumes as well as trading range, it seems both traders and investors are focusing their attention to anything else but trading…This market compression action is a setup for an explosive directional move just when most have fallen asleep.Though the markets may be uninspiring, it’s best to remain alert if you are trading in this market environment.

Today is Cycle Day 3 (CD3)..Odds of 3D Rally > 10 = 82%; Odds of 3D Rally > 20 = 54%; Average Range = 17.75; Max Average Range = 21.50; Possible HOD = 2138.00 based upon penetration of CD2 high; Possible LOD = 2114.50 based upon average range target.

***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 2128.00, THEN there is a 35% chance of making high above 2132.50. IF price converts this level THEN odds increase (68%) of expanding to 2134.75 TargetMaster Breakout Target.

Scenario 2: IF price fails to convert 2128.00, and subsequently violates 2118.50 THEN downside targets 2114.50 Average Range Target.

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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