Trade Strategy 06.11.15

Outside Gap above prior high set the stage for strong momentum move eclipsing Average 3-Day Cycle Target as well as Extreme Penetration Levels. Buying forced some short covering early, but it wasn’t until key 2094.50 level was penetrated, along with news headlines regarding Greece bailout negotiations that price accelerated to 2108 level.

****Today begins Contract Rollover to September “U” for E-mini’s****

Today is Cycle Day 3 (CD3)…All cycle targets have been satisfied and exceeded…Contract rollover may dampen trade activity today.

Odds of 3D Rally > 10 = 82%; Odds of 3D Rally > 20 = 53%; Average Range = 17.75; Max Average Range = 21.50; Possible HOD = 2116.50 based upon average penetration of CD2 high; Possible LOD = 2090.25 based upon average range on CD3.

***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 clears and converts PH (2108.00), THEN odds (40%) favor extending to 2111.25, followed by 2116.50 CD3 Penetration Target.

Scenario 2: Failure to convert PH (2108.00), suggests a pullback with initial support marked at 2098 Central Pivot. Below this level are multiple possible support levels between 2094 down to 2090.25.

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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