Trade Strategy 10.10.14

Is everyone sick yet from the wild ride on the “Vomit Comet”? Another wide range day notching nearly 50 handles…We haven’t seen this type of intra-day volatility since 2009…With the proliferation of algorithmic trading, directional moves are exacerbated to the maximum. At Polaris Trading Group we not only advocate, but strongly stress to our members to trade in alignment with dominant trend force and NOT counter-trend trade. This has allowed our members to remain out of “harms way” which is critical to long-term trading success.

Today is Cycle Day 2 (CD2): Odds of Rally > 10 = 83%; Odds of Rally > 20 = 45%; Average Range on CD2 = 14.50; Max Range = 22.25; Possible High = 1936.50 – 1938.50 zone based upon Average Cycle Rally; Possible Low = 1909 – 1908 based upon violation of CD1 low. Range Xtremes measure down to 1890 TargetMaster Breakdown Target.

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

Today’s Trade Hypotheses:

Scenario 1: IF price can penetrate and convert 1928.00, THEN there is a 60% chance of rallying higher to reach 1937 – 41 Three-Day Central Pivot Zone.

Scenario 2: Failure to convert 1928.00 and continued trade below Prior Day Low (1920.50) increases odds of further long liquidation targeting 1909 – 1908 zone, with Xtremes 1890.00

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 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.


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