Trade Strategy 10.29.14

Cycle Price Targets were achieved and exceeded in yesterday’s trade session…So any additional upside movement will be on “inertial energy”. S&P e-mini up 9.30% off the lows in 9 days…Like the 10% decline never even happened…Amazing!

Today in Cycle Day 3 (CD3)…As mentioned, cycle price targets have been exceeded…Price can continue higher or it can begin a new down leg at any moment. Average Range on CD3 = 18.00; Max Range = 21.50; Possible High = 1988.50 – 1993 based upon clearing and converting CD2 high; Possible Low = 1962.50 based upon average decline on CD3.

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

Today’s Hypotheses:

Scenario 1: IF prior-day high (1980.75) is cleared and converted, THEN there is a 54% chance of reaching 1984.25 – 1987.00 STATX Zone, with additional upside levels 1988.50 – 1989.25…1993.00…TargetMaster Range Breakout Level 1996.00.

Scenario2: Failure to convert PDH (1980.75), suggests buyers have been satisfied and decline could begin at any time. Downside levels to be mindful of are 1972.25 (CPZ), 1969.75, 1963.00…STATX Zone bwteen 1960.25 – 1957.50…TargetMaster Range Breakdown Level 1956.25.

Trade Strategy: We have been maintaining our trade setups in alignment with the bull (long-side), since that is where dominant action has been. We’ll be flexible to trade both long and short side from Decision Pivot Levels. Continue to focus of Bull/Bear Stackers andPremium/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 Twelve
I am disciplined. I behave in a way to reach my goals. I do what I intend to do. I have the intent to win through right actions. I will be patient for patterns to emerge and mature. I am decisive. I decide easily and act promptly. I act in the right way and right on time. When there is nothing to be done, I will wait.



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