Trade Strategy 08.27.15


Shares across the globe are skyrocketing after Wall Street cracked a six-day losing streak with its best rally in nearly four years. With momentum turning to the upside, investors seem to be covering their positions, while long-term bulls snap up perceived bargains. The rebound is also being attributed to falling expectations the Fed will soon raise interest rates. On Wednesday, NY Fed President William Dudley said a September hike seemed “less compelling” given recent global economic uncertainty.

Today’s Economic Calendar

8:30 GDP Q2
8:30 Corporate Profits
8:30 Initial Jobless Claims
9:45 Bloomberg Consumer Comfort Index
10:00 Pending Home Sales
10:30 EIA Natural Gas Inventory
11:00 Kansas City Fed Mfg Survey
1:00 PM Results of $29B, 7-Year Note Auction
4:30 PM Money Supply
4:30 PM Fed Balance Sheet


Our viewpoint yesterday was that of price stabilization and potential relief rally with quote:“Odds (83%) favor a strong rally attempt to clear through 1910 handle up to 1950 SPOT.”  Strong buy response emerged at the 1880.00 handle as sellers were absorbed as we alerted our Members in live trading room of developing bullish shift…Excerpt below:

[ Wed Aug 26 2015 13:07:09] David Dube: Momentum has Shifted…Bullish


Price continued rally…cleared and converted 1910 KEY SPOT…Projections were for price to reach 1930, then 1950 handles respectively, both which were achieved.

Overnight trade price extended higher to 1960 STATX Level and is currently trading 10 handles off highs at 1950 (8:00 am ET). Volatility is expected to remain high with wide price swings intra-day, so keep your helmets and chin straps tightly fastened.

Today is Cycle Day 1 (CD1)…Odds of Decline > 10 = 72%; Odds of Decline > 20 = 42%; Average Range = 18.75; Max Average Range = 22.50; Possible HOD = 1982 Cycle Rally; Possible LOD 1900.00 3 Day Central Pivot.

***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 can find responsive buyers on pullback to 1930 handle, THEN upside targets retest of overnight high zone between 1960 – 1964. Above this zone measures 1982 Cycle Rally Target.

Scenario 2: Violation and conversion of 1930 handle deepens pullback targeting 1925 – 1910 Central Pivot Zone…Stronger buy response is anticipated near to 1900 SPOT.

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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