Trade Strategy 06.04.15

S&P e-mini (ES) remains within multi-day range between 2120 and 2100 handles…In overnight trade price is yet again testing the lower edge of range (2100.00)…It appears from overall price action a “tipping point” is very close at hand. Markets do not like range bound trade for extended periods, so there could be a Change of Character (COC) very soon.

Today is 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 = 2122; Possible LOD = 2091.50. Average Decline = 21.50 targeting 2099.25.

***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 2100 handle, THEN initial upside targets 2109.25 – 2110.75 3D CPZ. Above this zone targets 2115.25…Should price momentum accelerate beyond this level, targets 2120.50, followed by 2122.25 Cycle Target.

Scenario 2: Violation of 2100 handle expands range to downside whereby selling is expected to accelerate…Downside conversion targets 2096.75 – 2094.00, followed by 2091.50 CD1 Low Violation and Low of Day 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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