Trade Strategy 10.21.14

Yesterday was Cycle Day 2 (CD2) and odds (83%) favored a rally to continue the bullish 3-day cycle. We had outlined that possible high could reach 1898.25 (Actual HOD = 1898.50), based upon penetration and conversion of CD1 high. Click here to review: Trade Strategy 10.20.14. Price has trade higher in post-session and in pre-market following a solid earnings report by Apple Computer.

Today is Cycle Day 3 (CD3)…Extended cycle price targets have already been exceeded in pre-session trade…Odds of 3D Rally > 10 = 82%; Odds of 3D Rally > 20 = 53%; Average Range on CD3 = 17.75; Max Range = 21.25; Possible High = 1909.50 based upon clearing and converting CD2 high. Possible Low = 1860.75; STATX Zone price target = 1913.50; TargetMaster Range Breakout Target = 1937.50.

***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 clears and converts PDH (1898.50), THEN there is a 68% chance of price extending to 1909.50, then 1913.50 STATX Zone. Above this zone measures 1926.25, then 1934.50 – 1937.50 zone

Scenario 2: Initial pullback support is marked at 1888.50 – 1893.50 CPZ…Violation of this zone targets 1881.00, then multiple levels between 1877.50 – 1868.50.

Trade Strategy: Bulls have regained control with a strong 3-Day Bullish Cycle…We will continue to remain aligned with dominant force, currently bull, on pullbacks to key Decision Point Pivots. Price having reached and exceed cycle targets may need to consolidate recent gains, so anticipating some back n fill price action would be normal, so we’ll remain open to trade opportunities on either side of trade ledger. 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 Six
I am at peace with uncertainty. I know there is no such thing as a sure thing. I have no particular need to be right. I understand that being perfect has no place in trading. I am flexible. I am willing to change my mind. I am alert to scenario changes. I accept the information that tells me I am on the right track or on the wrong track.




Leave a Reply