“The EverReady Market Bunny”…”It keeps going and going and going and going…”

Positive earnings releases from high-profile companies continue to keep the “buying drumbeat” sounding as S&P 500 Index notched yet another All-Time High, albeit marginally. About 77 percent of those companies that have reported results this season have beaten analysts’ estimates for profit, while 65 percent exceeded sales projection, according to data compiled by Bloomberg. Although price is viewed as being “overbought” by traders and investors, there just does not seem to be a catalyst to aggressively hit the sell button…YET!

Today’s hypotheses:

Scenario 1: IF PDH (1983.50) converts, THEN upside target STAT X Zone 1984.75 – 1986.00…Expansion targets range between 1987.25 – 1988.00, followed by 1989.50 – 1991.75.

Scenario 2: Failure to continue higher above PDH calls for pullback into prior day’s range with initial support  1981 – 82 High Volume Node (HVN)…Key Decision Point (DP) Support is marked between 1978 – 1979 handle. Violation of PDL(1976.75) targets 1973 handle with expansion levels measuring 1970 – 72 zone.

Trade Strategy: This cycles bullish price targets have been already achieved and exceeded…Today is Cycle Day 3…As such there is higher probability of early strength being faded (sold)…Any sign of failure to continue higher can offer short-side trade opportunities today, so we would entertain establishing shorts on failure reversals. As always, we respect the bulls strength as buying the dips to key DP’s has continued to be the most profitable trade. Focus on valid Stacker and Premium & Discount Setups that are in alignment with dominant market forces.

Focus on Trading Process…ALWAYS USE STOPS!

Good Trading…David

Habitude Five
I think in terms of probabilities. I do not know, all I have are probabilities. Probabilities are at the core of my decisions. Through consistent application of the probabilities, I will win.

PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS