Trade Strategy 11.03.14

Markets are beginning November on a high note, following BOJ announcement to expand their version of Quantitative Easing just as the FED concludes theirs…

Today is Cycle Day 3 (CD3)…Having already blasted through all cycle targets last week, anticipation will be for some consolidation of recent price gains. Odds of 3D Rally > 10 – 82% (exceeded); Odds of 3D Rally > 20 = 53% (again exceeded); Average Range on CD3 = 17.75; Max Range = 21.50; Possible High Zone = 2024.50 – 2028.50 based upon conversion of CD2 high; Possible Low = 1999.00 based upon minimum average range on CD3; TargetMaster Range Parameters are 2031.25 – 1991.25.

***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 (2016.75) is exceeded and converted, THEN there is a 50% chance of price pushing to 2022.75 – 2024.50 zone, followed by 2028.50 – 2031.25.

Scenario 2: Failure to convert PDH (2016.75), anticipation is for some consolidation “back n fill”…Pullback levels of interest are 2004.75 – 2001.75…1998.00-1999.00…TargetMaster Breakdown Level 1991.25…Major overlapping confluence of levels between 1989.25 – 1984.50.

Trade Strategy: Our tactical trade strategy will simply remain unaltered…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 Three
I am willing to accept loss. Losing is an integral part of the process. I know and accept that individual losses and losing periods will happen. They are endemic to trading. I do not like loss. I do not expect loss. I simply accept loss as a cost of doing business.


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