Trade Strategy 06.05.15


All eyes on Wall Street will be on the U.S. non-farm payroll report this morning, with the possibility that a strong reading could move the clock up on a Fed rate hike. Economists expect U.S. employers to have added 220,000 jobs last month, down slightly from April’s 223,000 and an unchanged unemployment rate of 5.4%. The report will be released by the Labor Department at 8:30 a.m. ET.

Thursday’s range parameters worked out nicely in my absence…Resistance near 2110 handle, with low of day projected to be 2091.50…Actual LOD 2091.25…Very nice!

Today is Cycle Day 2 (CD2)…Yesterday’s price weakness continues in overnight trade as price attempt a bounce, only to be rejected at 2102 handle…Currently in pre-cash trade price is testing prior low (2091.25)…

Odds of Rally > 10 =83%; Odds of Rally > 20 = 45%; Average Range = 14.50; Max Average Range = 22.50; Possible LOD = 2113.50 based upon average rally; Possible LOD = 2080.50 based upon CD2 Low Violation 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 holds above PL (2091.25), THEN there is a 56% chance of initially rallying back to 2100 handle…Above this level targets 2107.50 – 2108.75 zone, followed by 2110 – 2113.50 average rally target.

Scenario 2: Violation and conversion of PL (2091.25) forces additional selling initially targets 2089 – 2086.75 STATX Zone…Below this zone measures 2084.00, then 2080.50 CD2 Low 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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