Trade Strategy 10.15.14

S&P continued its volatile trade action in prior session with algorithm’s whipping price up n down like a dog angry with its rag doll toy. “Hit’em When They’re Up…Kick’em When They’re Down!” The Key Over/Under Zones to be mindful of are: 1883 – 1885 (Over)..1863 – 1865 (Under) 20-Handle Range.

Cycle day 1 (CD1) Low continues to hold in overnight trade without a violation. IF this level is cleanly broken and converted, THEN the Bear will continue to growl and further long liquidation could ensue.

Today is Cycle Day 2 (CD2) Odds of Rally > 10 = 83%; Odds of Rally > 20 = 44%; Average Range = 14.50; Max Range = 22.25; Possible High on CD2 = 1884 – 1886, based upon Average Rally; Extended Possible High = 1900 – 1902, based upon penetration of CD1 High.

***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 (1863.75), then there is a 57% chance of an initial 10-handle rally up to 1873…Above this level targets 1878 – 1881.50…3DCPZ = 1883.50 – 1892 (very wide zone).

Scenario 2: Violation and conversion of PDL (1863.75) places odds at 46% of hitting 1861 – 1857.50, then 1853.00 – 1850.50 based upon average range violation of CD1 Low. TargetMaster Range Breakdown Level measures 1847.25.

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 Two
I am detached from the results. I think in terms of the process and the validity of the process. I understand that I am more than the trading. I do not tie a fragile ego to any day’s trading results. I have faith that over time I will make money. The results of any one trade are statistically unimportant. I think in term of probability. A single trade says nothing about me as a person.


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