Trade Strategy 07.14.15


Sending oil prices lower, Iran and major world powers have sealed a historic nuclear accord after more than two weeks of negotiating in Vienna. The deal will curb Tehran’s nuclear program in return for an easing of sanctions, enabling the oil-rich nation to ramp up its energy exports, access international finance and open the doors to global investors. Full implementation of the agreement will likely take months and is contingent on the pace at which Iran meets its obligations. 


S&P Futures (ES) rallied nearly 43 handles in a sign of relief following the GREK/EURO deal. Steady buying sent benchmark indexes to settle at or near highs of their respective ranges. Expectation for today’s trade will be for some consolidation to absorb recent gains.

Today is Cycle Day 2 (CD2)…Odds of Rally > 10 = 83%; Odds of Rally > 20 = 45%; Average Range = 14.50; Max Average Range = 22.50; Possible HOD = 2105.75 based upon penetration of CD1 high; Possible LOD = 2073,50 based upon average range on CD2.

***Note: The odds highlighted are NOT predictions or trade recommendations, rather a guide based upon historical observed occurrences.

Click Here

Today’s Hypotheses: September (U) Contract

*****The levels outlined below are more general framework within a larger range…They are to be used are reference prices from which to consider trade opportunities, not hard trade levels.

Scenario 1: IF Price holds above 2087.50 and THEN converts PH (2094.75), upside expansion measures 2102.00 – 2107 STATX Zone.

Scenario 2: Failure to convert PH (2074.75) would expect some form of pullback or consolidation of prior day’s gains. Initial support is marked at 2087.50, with layered levels down to 2080.50 Central Pivot. Violation of this level targets 2073.50.

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


Leave a Reply