Trade Strategy 10.14.14

Today begins a new Cycle (CD1)…Sharp sell-off late in prior session has price testing range expansion D-Level at 1865.00. Today will be critical for the markets to find some semblance of support near current levels. Normally on Cycle Day 1 expectation is for price to probe lower in search of a new secure low. Yesterday’s weak close and no further deterioration in Globex below 1865 handle, there is a decent chance that this level becomes cycle low and new Cycle Rally will begin.

Today is Cycle Day 1 (CD1)…Odds of Decline > 10 = 70%; Odds of Decline > 20 = 41%; Average Range on CD1 = 18.75; Max Range = 22.00; Possible High = 1911.75; Possible Low = 1886 based upon Average Decline on CD1; Expansion Low projected 1867.00 based upon violation of CD3 low.

***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 hold above PDL (1865.00) and Clear and Convert 1878.00, THEN there is a 50% chance of price reaching 1884.50 – 1886.00 zone. IF buying is strong, then upside targets 1896 TargetMaster Range Breakout Level..STATX Zone is 1900.- 1905. Above these levels measure 1911.50 – 1914.50.

Scenario 2: Violation of PDL (1865.00), THEN there is a 60% chance of price pushing lower into STATX Zone between 1952.75 – 1958.00. Failure to find buyers in sufficient quantity in this zone targets 1834.50…TargetMaster Range Breakdown Level.

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 One
I am ready to trade. My patterns are verified. My homework is complete. My mind is clear. I have rehearsed everything. I am prepared strategically, emotionally, and financially each and every day.


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