Trade Strategy 10.27.14

Today begins a new cycle (CD1)…With the Bulls having firmly regained control, any decline may be relatively shallow if there is continued upside momentum in price.

Odds of Decline > 10 = 71%; Odds of Decline > 20 = 41%; Average range on CD1 = 18.75; Max Range = 22.00; Average Decline = 21.50; Possible High = 1967 – 69 zone based upon clearing and converting CD3 high; Possible Low = 1938 – 40 based upon average decline observed on CD1.

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

Today’s Hypotheses:

Scenario 1: IF PDH (1960.25) THEN there is a 55% chance of price reaching 1964.50 – 66.50 zone. Above this zone targets 1969.50, top of STATX Zone. IF price momentum is super strong, THEN upside potential target TargetMaster Range Breakout Level 1986.25.

Scenario 2: Failure to clear and convert PDH (1960.25), expectation is for pullback in price lower to probe for renewed buy response and a new secure cycle low for which to stage next rally. Price levels to be mindful of are: 1954 – 56…1951.25..1946.50, followed by Three-Day Central Pivot Zone between 1942.25 – 1939.25. TargetMaster Range Breakdown Level is 1934.25. Violation on PDL (1931.75) target expansion levels 1925.50, then 1921.25.

Trade Strategy: We have been maintaining our trade setups in alignment with the bull (long-side), since that is where dominant action has been. Anticipation is for some renewed selling to develop early in this cycle, with additional two-side trade activity to absorb recent bullish trade. We’ll be flexible to trade both long and short side from Decision Pivot Levels. Continue to focus of Bull/Bear Stackers and Premium/Discounts. 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 Ten
I know anything can happen, and I can handle anything that does happen. I am open minded. My thoughts and perceptions are clear. I know what to look for. I have rehearsed everything. I adapt to change. I will listen to my indicators and the patterns that emerge. I will adjust and not demand that things continue as they first started.


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