Trade Strategy 06.16.15

Gap lower in Monday’s Session lead to a test of 6/9 low zone between 2058 – 2062…Sharp bounce stalled hard at the 2078 handle, which we will mark as “key resistance”. Overnight night trade showing continued price weakness retesting prior low (2062.75). Successful test could set the stage for strong rally attempt to regain lost territory for bulls.

Today is Cycle Day 3 (CD3)…Odds (82%) are favorable for price to get back to CD1 Low (2082.00)…Odds of 3D Rally > 10 = 82%; Odds of 3D Rally > 20 = 54%; Average Range = 17.75; Max Average Range = 21.50; Possible HOD = 2090.00 based upon penetration od CD2 high; Possible LOD = 2060.75 range breakdown 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: July (U) Contract

Scenario 1: If Price holds above 2062.00, THEN there is an 82% chance of reaching 2072 – 2073.75 Central Pivot Zone. Above this zone target 2078 handle. Successful conversion of 2078.00 targets CD1 Low (2082.00).

Scenario 2: Violation of PL (2062.75) potentially forces long liquidation initially targeting 2060.75 TargetMaster Range Breakdown Target. Further weakness below this level targets 2050.50 CD2 Low Violation Level.

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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