Yesterday’s key marker at 1912 held throughout most of the session until finally all the supply was absorbed, which pushed price upwards into stated price target zone between 1917 – 1918.50 into settlement. Trade opportunities were scarce as most of trade occurred within a very narrow 8 tick range until the breakout…Lack of rotation resulted in PTG Traders to “sit the session out” and watch the paint dry. There was a bit more trade opportunity in other contracts such as NQ, TF and CL…So, as traders we need to be seeking out available valid trading opportunities across other indexes and markets…Don’t Sit Idle…Be Proactive.

Today is last day for investors/traders to “Sell in May and Go Away”…It actually seems as though many have taken early vacations with trading volumes and volatility at historical lows. The slow grind higher is good for investment accounts, but tough on trading accounts. As the uptrend continues to grind higher, there is a growing threat of a “melt-up” that forces shorts to capitulate, and as such we continue to trade along with dominant force and not get caught on wrong side of the trade.

Upside penetration and conversion of Prior Day High (1918.00) targets 1920 – 22 zone with extremes reaching 1924.25…1925.75…1927.25…1930. Failure to convert PDH suggests a pullback to prior support (1908 – 10) to attract renewed buy response. Below this initial support zone are layered acceptance zones (1904 – 06)…followed by (1900 – 02).

Trade Strategy continues to favor buying pullbacks to key reference zones until there is a shift in the underlying price structure and momentum. REMAIN FOCUSED and DISCIPLINED!

Good Trading….David

Habitude Three
I am willing to accept loss. Losing is an integral part of the process. I know and accept that individual losses and losing periods will happen. They are endemic to trading. I do not like loss. I do not expect loss. I simply accept loss as a cost of doing business.