Yesterday’s price action was textbook Cycle Day 1 outlined in prior DTS Report 03.05.15 as Scenario 2 played out perfectly. Once a secure low was found, buyers stepped back in and aggressively auctioned price higher to end day where it began…within the Open Range. Markets are firm in overnight trade, albeit with light volumes…The rally that began yesterday is about half-way to cycle targets, so potential remains for higher prices, but some back n fill is also an acceptable outcome for today’s session.
Today is Cycle Day 2 (CD2)…Odds of Rally > 10 = 83%; Odds of Rally > 20 = 45%; Average Range on CD2 = 14.50; Max Average Range = 22.50; Possible High = 2113.50
based upon average range expansion above PDH (2105.50); Possible Low = 2083.50 based upon max average range on CD2.
***Note: The odds highlighted are NOT predictions or trade recommendations, rather a guide based upon historical observed occurrences.
Today’s Hypotheses:
Scenario 1: Bullish price momentum is intact following probe for secure low on CD1…Cycle Target is 2107 handle, so there remains potential to achieve this level during this cycle. Some back n fill can also be anticipated today, but any pullback needs to find responsive buyers in decent quantity to reach upside target potential.
Scenario 2: Failure to clear and convert 2100 handle today suggests some back n fill necessary to absorb recent up thrust in price. Pullbacks are expected to find buy response above 2095 – 2098 zone. Violation of this zone targets 2092.50…Below this level price can retrace to retest PDL (2085.25)
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 Five
I think in terms of probabilities. I do not know, all I have are probabilities. Probabilities are at the core of my decisions. Through consistent application of the probabilities, I will win.