As anticipated, yesterday’s trade action formed a Neutral Day consolidation pattern, absorbing recent gains from last week. Trade Strategy 11.03.14 Today is Election Day across the United States, so investors/traders may continue to be content with current prices and not make any major commitments until election results have been tallied.
Today begins a new Cycle (CD1)…Normal cycle trade is in search of a new secure low from which to stage next rally attempt. Many times on CD1 price is generally weak and trades lower…With recent underlying bullish momentum, any sell down could be relatively shallow.
Odds of Decline > 10 = 70%; Odds of Decline > 20 = 41%; Average Range on CD1 = 18.79; Max Range = 22.00; Possible High = 2029.25 based upon conversion of CD3 high; Possible Low = 1997.25 based upon average decline on CD1. TargetMaster Range Parameters = 2029.25 – 1991.75.
***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 can clear and convert 2013.00, THEN there is a 55% chance of reaching PDH (2019.25) initial target…Further conversion of PDH targets range expansion levels between 2026.50 – 2029.25, with STATX Xtreme 2032.25.
Scenario 2: Failure to convert 2013.00 or PDH (2019.25), suggests further price consolidation and search for new secure low. Levels to be mindful of on any pullback probe are: 2004…1997.25 – 2000.75 Three-Day Central Pivot Zone…1992.75 – 1991.75 TargetMaster STATX Zone.
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 Four
I am at ease with controlled risk. I will risk and I will win. I am courageous. I will take a chance. I manage risk to my comfort level. Risk keeps me on my toes, keeps me alert and at the top of my game.
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS