Happy Birthday to All Americans and to the Freedoms the Fourth of July Holiday represents.
Yesterday’s trade was exactly as scripted in prior DTS…“expectation of consolidation range trade developing.” Today is a shortened session and as such, volumes are expected to be a fraction of average…Key support marker 1965 handle continues to hold within consolidation with bullish skew.
Since there is no change in current outlook; so we will reiterate hypotheses laid out in prior DTS:
Scenario 1: If price can penetrate and convert 2-Day High (1971.75) THEN there is an 82% chance of price reaching 1973.00 – 1975.00 STAT-Xtreme Zone and a 65% chance of reaching penetration target of 1977.25 – 1978.50 zone.
Scenario 2: Failure to exceed 2-Day High (1971.75), suggests consolidation and absorption of recent rally. Initial support is marked between 1963.00 – 1965.00 which is prior session VTMP. Violation of this zone and deeper retracement to 1961.00 – 1959.00 zone.
Trade Strategy: Bulls reasserted their strength Tuesday, and as such, we will defer to buying pullbacks to key support zones, with expectation of consolidation range trade developing. There are a number of economic reports to be released with the shortened holiday week, so anything can happen, but we trade the probabilities.
Focus on the Trading Process…Not the Outcome ALWAYS USE STOPS!
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