Yesterday’s Bullish Open Range Gap (ORRMP) and strong Market Internals (ADSYNC) set the stage for “trend day” trade action. Expectation on bullish trend days is for price to close at or near the high of day…Our projected price target was 2085.00 (actual high = 2085.50) as outlined in prior Daily Trade Strategy Briefing 02.12.15. So it was a textbook trend day.
Today is Cycle Day 3 (CD3)…Residual momentum may push prices higher before responsive selling enters the picture. All cycle targets have been achieved and exceeded, so any additional upside is inertial momentum.
Odds of 3D Rally > 10 = 82% (achieved); Odds of 3D Rally > 20 = 54% (achieved); Average Range on CD3 = 17.75; Max Average Range = 21.50; Possible High = 2095 based upon average penetration of CD2 high; Possible Low = 2064 based upon average decline on CD3.
***Note: The odds highlighted are NOT predictions or trade recommendations, rather a guide based upon historical observed occurrences.
Today’s Hypotheses:
Scenario 1: IF Price clears and converts PDH (2085.50), THEN there is a 55% chance of price extending to 2090.25, followed by 2092.25..extensions measure 2095, then 2101.50 TargetMaster Breakout Range Breakout Level.
Scenario 2: Failure to convert PDH (2085.50) suggests pullback into prior range which targets 2081.50…2078.75…then 2079.00 – 2075.50 CPZ Zone. Below this zone are multiple levels which if necessary will be dynamically updated in trading room.
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 on 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 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.