Bulls are in firm control as price continued to rally yesterday (CD2) to reach initial Cycle Price Target 2017.50. Trade Strategy 11.05.14 Overnight trade is light with volume approximately 112k and narrow 6 handle range.
Today is Cycle Day 3 (CD3): Odds of 3D Rally > 10 = 82%; Odds of 3D Rally > 20 = 53%; Average Range on CD3 = 17.75; Max Range on CD3 = 21.50; Possible High = 2028.25 – 2031.00 based upon clearing and converting CD2 high (2020.50); Possible Low = 1991.50 based upon violation of CD2 low (2003.75); TargetMaster Parameters = 2035.50 – 2001.75.
***Note: The odds highlighted are NOT predictions or trade recommendations, rather a guide based upon historical observed occurrences.
Scenario 1: IF price can convert PDH (2020.50, THEN there is a 50% chance of reaching expanded cycle price targets between 2028.25 – 2031.00, with TargetMaster/STATX Zone Breakout level 2035.50.
Scenario 2: Initial cycle targets have been achieved, so failure to convert PDH (2020.50) suggests buyers are satisfied with current price levels. Should any aggressive selling develop, lower price zones to be mindful of are: 2010.00 – 2012 3DCPZ, 2006 – 2006 STATX Zone; TargetMaster Range Breakdown Level 2001.75. Violation of 2001.75 targets 1995.25 – 1991.50 zone.
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 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!
I am at peace with uncertainty. I know there is no such thing as a sure thing. I have no particular need to be right. I understand that being perfect has no place in trading. I am flexible. I am willing to change my mind. I am alert to scenario changes. I accept the information that tells me I am on the right track or on the wrong track.
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS