Trade Strategy 06.18.15


Federal Reserve cut its outlook for interest rates and warned of spillover if Greece talks fail. At yesterday’s meeting, the Fed suggested it might raise rates only once in 2015 by a quarter percentage point, rather than twice as many officials previously anticipated.

Volatile trade throughout Wednesday’s session as FOMC released it’s policy statement and forecast. Price held within extreme price edge parameters between the outlined in yesterday’s Daily Trade Strategy 06.17.15. Both scenario’s played out perfectly.

Today is Cycle Day 2 (CD2)…Expectation is for some “back n fill” price action within prior day’s range, with a slight upwards directional bias.

Odds of Rally > 10 = 83%; Odds of Rally > 20 = 45%; Average Range = 14.50; Max Average Range = 22.50; Possible HOD = 2104.25; Possible LOD = 2073.75.

***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 clears and converts PH (2098.75) THEN upside targets 2101, followed by 2104.25. Above this level measures 2107.50 CD2 High Penetration Level.

Scenario 2: Pullback within prior day’s range is the main expectation to test and confirm lower support levels. Key levels to be mindful of for renewed buy response are 2080 – 2082.50 3D CPZ, followed by 2076.50 – 2073.75 TargetMaster STATX Zone. Downside violation of this zone measures 2068.50 Average Cycle Decline and 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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