Trade Strategy 09.25.14

Price held firm above the ONL outlined in prior Strategy Report. This setup an early test of key support during Opening Range…Once price penetrated and converted 1976.25, then the “trading tide” shifted in favor of Bulls. It was game on as price steadily rose 22.25 handles, which is the Max Range on Cycle Day 2 to reach 1990.75, cycle high projected price target.

Today is Cycle Day 3 (CD3)..Projected cycle targets have now been achieved, so any residual momentum could extended beyond current levels before any significant sell response materializes.

Odds of 3D Rally > 10 = 82%; Odds of 3D Rally >20 = 53%; Average Range on CD3 = 17.75; Max Range = 21.25.

***Note: The odds highlighted are NOT predictions, rather a guide based upon historical observed occurrences.

Today’s Hypotheses:

Scenario 1: IF Prior Day High (1992.50) is penetrated and converted, THEN upside targets 1995.50 – 1996.50, followed by 1998.50 – 2000.25 Xtreme Zone.

Scenario 2: Failure to convert Prior Day High (1992.50), THEN expectation would be for pullback in price to find solid support. Levels of interest: 1986 – 88; 1982 – 84 3DCPZ. Any violation of Three-Day Central Pivot zone opens door for deeper pullback which targets 1976.75 TargetMaster Level.

Trade Strategy: We are anticipating relatively quiet trade today with some back n fill price action to balance out the past two trade sessions. Any push to extended cycle target levels would setup a potential reversion short trade…Pullback to key lower levels highlighted above is buy the dip opportunity. As always, follow the trade rules, and remain focused.

Stay Disciplined…Take the Trade…ALWAYS USE STOPS!

Good Trading…David

Habitude Twelve
I am disciplined. I behave in a way to reach my goals. I do what I intend to do. I have the intent to win through right actions. I will be patient for patterns to emerge and mature. I am decisive. I decide easily and act promptly. I act in the right way and right on time. When there is nothing to be done, I will wait.


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