Summer Slowdown

The remaining two weeks of August mark a high vacation period for many investment professionals and lower than average trade volumes, so with the Summer Slowdown upon us, now is not the time to become “bold traders’. Stay disciplined to your trade plan, do not fade price direction, go with the flow and you will be much safer and happier.

Today is Cycle Day 3 (CD3) and cycle targets have already been achieved. Residual momentum may push price higher to Xtreme Zone between 1974.00 – 1976.50. We’ll be on higher alert for possible auction failure against these levels.

Average Range on CD3 = 17.75; Max Range on CD3 = 21.25 Odds of Rally > 10 = 82%; Odds of Rally > 20% = 54%

Today’s Hypotheses:

Scenario 1: Bullish momentum has carried over into Globex Session and price is currently above the Prior Day High (1969.00). IF price can maintain it’s momentum, THEN there is a 55% chance of reaching 1974.00 – 1976.50 Xtreme Cycle Zone.

Scenario 2: IF price falls back below Prior Day High (1969.00), odds increase for lower probe to find support. Key levels to be mindful of are 1962 – 1964 PDVTMP, followed by 1956 – 58 zone.

Trade Strategy: We must continue to respect the current bullish cycle momentum, and as such, buying pullbacks to key support Decision Points (DP) remains the tactical trade. Lighter volumes and lack of price rotation make it dangerous to fade price action. If price violates key Support DP’s, then we will consider the short-side trade. Otherwise, remain disciplined…follow the rules…

Be Prepared….Be Profitable    ALWAYS USE STOPS!

Good Trading…David

Habitude Eleven
I am courageous and I always act, even in the face of uncertainty and possible loss. Do not say, no fear. Feel the fear and act anyway. I may be frightened, but I still saddle up. I am not reckless. I act promptly in accordance with my methodology. I respect my calculations. I have a healthy respect and I balance that respect with my courage. I am an explorer. I am on a hero’s journey.



Leave a Reply