Trade Strategy 10.31.14


Thanks to Bank of Japan for offering the Markets a Big Halloween Treat with their version of Quantitative Easing. S&P has rocketed higher in overnight trade back to all-time high at 2014. Central Banks will continue to flood the world with easy money to fend off even the hint of deflation…Destroy the Yen…Destroy the Dollar…at all costs if the deflation snake rears its ugly head. HAPPY HALLOWEEN 🙂

Today is Cycle Day 2 (CD2)..Simply all targets have been well exceeded with current price action courtesy of BOJ easing. Odds of Rally > 10 = 83%; Odds of Rally > 20 = 45%; Max Range = 22.50; Possible High of Day = 2007.75 (currently exceeded); Possible Low of Day 1967.75 (not even close); Upper STATX Zone = 2025.00 = 2037.25 (WOW!!)

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

Today’s Hypotheses:

Scenario 1: IF Prior Day High (1994.25) is cleared and converted (indeed it has), THEN upside projection measures 2007.75 (achieved and exceeded). Prior all-time high has been hit at 2014 handle.

Scenario 2: Failure to convert PDH (1994.25)…seems like a joke now…THEN 1982.50 is projected downside level for support…3DCPZ = 1977.25 = 1973.25. TargetMaster Range Breakdown Level = 1967.75.

Trade Strategy: With news from BOJ unexpected monetary easing has caused global markets to catapult higher…sorry shortie…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 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 Two
I am detached from the results. I think in terms of the process and the validity of the process. I understand that I am more than the trading. I do not tie a fragile ego to any day’s trading results. I have faith that over time I will make money. The results of any one trade are statistically unimportant. I think in term of probability. A single trade says nothing about me as a person.

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