***Note: This Report for Tuesday 10.07.14 is being written at 6 PM Monday evening…
Monday’s trade action was textbook Cycle Day 1..Price failed to find a sustained bid above the Open Range Midpoint on a bullish Gap. This setup a sell condition once price also failed to find support at prior session high (1964.50). The auction expanded down to Average Daily Range before a buy response surfaced…shallow bounce back to VTMP was all it could muster…not a very strong showing. Tuesday is Cycle Day 2…IF Monday’s low is a “secure low”, then on any test should hold, otherwise more selling may develop as the bears currently have the upper edge.
Cycle Day 2: Odds of Rally > 10 = 83%; Odds of Rally > 20 = 45%; Average Range on CD2 = 14.50; Max Range = 22.25; Possible High = 1967.25 – 1969.50 based upon average rally; Extreme High = 1976.50 based upon penetration of CD1 High. Possible Low = 1941.25 – 1940.00 based upon violation of CD1 Low.
***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 (1950.50), THEN there is a 45% chance of rally back to PDH (1971.00)…IF price can convert the PDH, THEN upside projects 1972.75 – 1976.50.
Scenario 2: Violation of PDL (1950.50), THEN odds favor price breakdown targeting 1944.00 – 1945.75 3DCPZ; Below this level targets 1941.00 TargetMaster Breakdown Level, with Xtremes measuring 1939.75 – 1935.50 STATX Zone.
Trade Strategy: With intra-day volatility on the rise with swings of increased magnitude in either direction, our main trade strategy will be to remain open and flexible to two-side trade, both long/short from key Decision Point Pivots (DPP). 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 Eight
I can recover from any setback. I have an attitude of abundance. I affirm abundance in the universe. I know I cannot begin to count the stars. I realize the ocean doesn’t care whether I go to it with a bucket or a teaspoon. I know the market provides a river of opportunities. I invest in my capabilities. I will be happy with my results.
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS