Trade Strategy 08.10.15


Today’s Economic Calendar
10:00 Labor market condition index
12:30 PM TD Ameritrade IMX


In prior DTS Report 08.07.15 we wrote: Scenario 2: Violation of PL (2070.00) opens door for continued sell down targeting 2064.25″. The actual LOD was 2062.00, well within MOE and with late day rally neutralized early weakness.

In overnight trade, price continues to rally from Friday’s low…Currently we have a Positive 3 Day Rally, as long as price stays above 2070.00 handle during Cash Session. Initial price target on this rally is 2085.50, which is Average Range for Cycle Rally. Above this level targets 2089.00 TargetMaster Range Breakout Level.

Today is Cycle Day 3 (CD3)…Odds of 3D Rally > 10 = 82%; Odds of 3D Rally > 20 = 54%; Average Range = 17.75; Max Average Range = 21.50; Possible HOD = 2085.50; Possible LOD = 2055.25.

***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: 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 clears and converts PH (2082.75), THEN odds (74%) favor extending higher to initial target 2088.25 – 2089.00 Zone. Further strength above this zone measures 2093, followed by 2095.50 SPOT.

Scenario 2: Violation of 2072.50 opens door for pullback initially targeting 2066.50, followed by retest of PL (2062.00). Violation of this level expands downside to 2055.25 TargetMaster Range Breakdown 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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