Weakness in Eurozone early yesterday did indeed spill over to US Markets as prices sold down throughout the session to settle slightly off day low (2009.50). In yesterday’s DTS Report, we highlighted in Scenario 2 that violation of 2036-38 zone could cause “long liquidation”…That in-fact occurred with potential of 2028 being projected low…Price momentum was too strong and blew past this level by an additional 10-handles.
In overnight trade price has held above prior day low (2009.50)…There is some early signs of price stabilization above 2012 handle…This is going to need to hold on any pullback test during day session to validate 2009.50 as a more “secure low” for this cycle.
Today is Cycle Day 2 (CD2)…Odds of Rally > 10 = 83%; Odds of Rally > 20 = 44%; Average Range on CD2 = 14.50; Max Average Range = 22.50; Possible High = 2058.50 based upon conversion of PDH (2048.25); Possible Low = 1986 based upon violation of PDL (2009.50)
***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 can hold above PDL (2009.50) and stabilize above 2012 on any pullback, THEN odds (55%) favor a retracement move up to 2022 handle…Above this level targets 2025..2029…then 2031.75 – 2032.75 zone. TargetMaster Breakout Level 2038.25.
Scenario 2: IF price violates 2009 – 2012 zone, THEN additional liquidation is more likely to unfold, with a 40% chance of pushing lower to TargetMaster Breakdown Level 2000.00. Extreme lower target down to 1986 should the 2000 handle not hold support.
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 of 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 Two
I am detached from the results. I think in terms of the process and the validity of the process. I understand that I am more than the trading. I do not tie a fragile ego to any day’s trading results. I have faith that over time I will make money. The results of any one trade are statistically unimportant. I think in term of probability. A single trade says nothing about me as a person.