Trade Strategy 10.24.14

S&P e-mini continued its upside march yesterday to reach our projected TargetMaster Range Breakout Level of 1955.25. News report of NYC’s first Ebola patient which has tested positive put an end to the rally which was already into extreme territory.

Today is Cycle day 3 (CD3)…Having reached 3D Expansion Cycle Targets, some new aggressive selling may now re-emerge, as price rallied 7% off deep lows from last week.

Odds of 3D Rally = 82%; Odds of 3D Rally > 20 = 53%; (Note: These odds have been achieved and exceeded); Average Range on CD3 = 17.75; Max Range = 21.75; Possible High = 1964 – 69 zone; Possible Low zone = 1926 – 1911 zone.

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

Today’s Hypotheses:

Scenario 1: IF the Prior Day High (1956.25) is cleared and penetrated, THEN there is a 54% chance of price reaching 1964.00. TargetMaster Range Breakout Level = 1973.75.

Scenario 2: Failure to convert PDH (1956.25) suggests buyers are currently content with positions, and some additional back n fill consolidations would be required to renew buy response. Pullback zones to be mindful of are 1928 – 1933.50 3DCPZ and TargetMaster Breakdown Range Level 1918.25.

Trade Strategy: Expectation today is for additional two-side trade activity within prior days range to absorb recent bullish trade. We’ll be flexible to trade both long and short side from Decision Pivot Levels. Continue to focus of 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

Habitude Nine
I will identify my mistakes and learn from them. I am optimistic, realistic and honest. I will not make up stories about the good or bad things that occurred in the past or are happening now. I admit when something is not working. My optimism gives me faith and courage. I will not fall prey to blame and fear.



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