Trade Strategy 09.26.14

In Wednesday’s DTS we wrote about violation of FED Day Low qualifying as a “Change of Character” (COC) in market sentiment. Trade Strategy 09.23.24 We followed up by stating: “Any future price rallies may now be met with increased responsive selling pressures as money managers will seek to reduce or hedge Market Risk exposure.”  Trade Strategy 09.24.14

Aggressive selling right from the Opening Range drove prices deep into negative territory yesterday closing in the lower quartile of range and exceeding the average range by nearly two-times. Traders should not have been surprised by the sell-off, since there have been major internal divergences developing for some time. Name of the game now is “Risk-Off”.

Today is Cycle Day 1 (CD1) The Average Decline normally experience on CD1 has been exceeded, so momentum could continue to push price lower to target a possible CD1 Low target of 1946.25 – 1950.50 zone.

Odds of Decline > 10 = 70%; Odds of Decline > 20 = 41%; Average Range on CD1 = 18.75; Max Range = 21.75

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

Today’s Hypotheses:

Scenario 1: Price is currently holding above Prior Day Low (1957.75) in early morning trade. IF price can continue to hold above, THEN there is a 45% chance of rally back to 1970.25. Above this level targets 3D CPZ (1974.50 – 1978.00).

Scenario 2: IF price violates PDL (1957.75), THEN downside targets 1950 – 54 STATX Zone, then, 1947.24 – 1944.00 TargetMaster Breakown Level.

Trade Strategy: Very Simple: Remain in alignment with intra-day dominant force by using Bull/Bear Stacker Setups to get on-board directional price shift…Premium and Discounts for continuation of move. Remain open and flexible to all trade opportunities. Very Important to “check your biases at the door“…Trade the setups…not opinions.

Remain Disciplined….ALWAYS USE STOPS!

Good Trading…David

Habitude One
I am ready to trade. My patterns are verified. My homework is complete. My mind is clear. I have rehearsed everything. I am prepared strategically, emotionally, and financially each and every day.



Leave a Reply