Trade Strategy 06.01.15

Price continues to be locked within multi-day range between 2100 – 2125 price edge parameters. Bulls have lost some upside energy this is true, but they have yet to succumb to the growling Bear. Until there is a definitive break outside these parameters, we can anticipate more of the same. STAY ALERT!

Today begins a new 3-Day Cycle…Part of the decline which begin on Friday is in place…So the Rally can begin anytime…Average Cycle Decline Target is 2100.25, so holding above this level is what is required for bullish case. Significant violation and conversion of this level places strength in the Bear camp.

Cycle Day 1 (CD1); Odds of Decline > 10 = 71%; Odds of Decline > 20 = 41%; Average Range = 18.75; Max Average Range = 22.00; Possible HOD = 2121.00 Possible LOD = 2093.25.

***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 holds above 2104.00, THEN initial upside targets 2114.00 – 2115.50 Three-Day Central Pivot Zone. Above this zone increases odds (72%) of reaching 2121.00 TargetMaster Range Breakout Level.

Scenario 2: Violation of 2104.00 targets 2100.25 average cycle decline…Violation of this levels increases odds (65%) of reaching 2096.00..Below this level is 2093.25 – 2091.50 Low Cycle Violation 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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