Trade Strategy 06.19.15

Thursday was textbook Cycle Day 2 as price “back n filled” as expected along with high odds (83%) of rally as laid out in prior Daily Trade Strategy 06.18.15. The rally reached the maximum average penetration level of 2119 as high of day before pulling back slightly for settlement.

In overnight trade price is up marginally but below PH (2119.25). Cycle targets have been satisfied…Residual momentum may take price higher, though we anticipate some choppy trade with slight downside lean into Quad Witch Options Expiration.

Today is Cycle Day 3 (CD3)…As stated above, all cycle targets have been exceeded, so the following numbers are more rhetorical…Refer to scenario’s below for more trade detail.

Odds of 3D Rally > 10 = 82%; Odds of 3D Rally > 20 = 53%; Average Range = 17.75; Max Average Range = 21.50; Possible HOD = 2128 based upon penetration of CD2 high; Possible LOD = 2097.75 based upon max 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: July (U) Contract

Scenario 1: If price penetrates and converts PH (2119.25), THEN there is a 45% chance of expanding to 2124 – 2128 STATX Zone, followed by 2134 TargetMaster Range Breakout Level.

Scenario 2: Failure to convert PH (2119.25), suggest buyers are satisfied and some “back n fill” action is required to find new buyers. Lower levels to be mindful of on pullback are 2108.75…2105.25 – 2100.75 Central Pivot Zone. Below this zone measure TargetMaster Range Breakdown Level 2095.75.

Dynamic intra-day levels will be updated live in the Trading Room.

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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