Trade Strategy 10.30.14

“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.”

The above quoted comment is from yesterday’s Daily Trade Strategy whereby expectation was for new responsive and aggressive action from sellers. Projected average range was 18 handles. Overnight high is 1980.75…minus (-) 18.00 equals (=) 1962.75…Current pre-open trade is 1962.00 (7:30 am ET). So average decline has currently been satisfied, though additional selling may overflow into pit-session trade.

Today is Cycle Day 1 (CD1), which begins a new cycle and probe for a new “secure low” from which to stage the next rally. Odds of Decline > 10 = 71%; Odds of Decline > 20 = 41%; Average Range = 18.75; Max Range = 22.00; Possible High = 1992 – 1994 zone based upon conversion of CD3 high; Possible Low = 1951.50 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 Hypotheses:

Scenario 1: IF price clears and converts PDH (1985.75), THEN upside targets 1991.75 – 1994.25. ***This has low odds of occurring on CD1″

Scenario 2: Odds of decline to meet range parameters have greater likelihood of occurring on CD1. Price has already in overnight trade reached range target zone between 1961.25 – 1958.25 STATX Zone.

Trade Strategy: Deep upside Cycle Range Targets have been fulfilled on this multi-day rally. Expectation now is for more responsive and aggressive participation from sellers. As such our tactical trade strategy will be for selling rallies into key Decision Point Pivot Zones. 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 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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