The main focus this week is Corporate Earnings…Some of the biggest Tech and Industrial Companies are slated to report quarterly earnings….As such, markets should remain relatively contained within recent trading ranges, though headline risk is always a wildcard which could affect prices at any moment.

Today’s Hypotheses:

Note: Monday marked second “inside day” trading…Price compression within 3-day range.

Scenario 1: IF price can penetrate and convert PDH (1970.00) THEN there is a 87% chance price can reach 1972 – 74 zone, with an additional handicap of 60% achieving 1977.50 – 1978 zone.

Scenario 2: Failure to expand beyond PDH (1970) keeps price tightening within 3-day compressing range…Initial Support is 1966 – 68 zone, then, 1962 – 64, with Key Marker Decision Point (DP), 1958 – 60.

Trade Strategy: Yesterday’s anticipated support zone (1958 – 60) held firm as bulls continue to absorb any supply…Trade bias remains squarely in the bull camp (buy the dips)…This does not preclude fading the upper edges with auction failures..So, our core tactical trade is to aggressively take Stacker and Premium & Discount Setups which keeps us aligned with strongest market forces.

DON’T EVEN THINK OF FADING STRONG MOVES….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.

PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS