Trade Strategy 11.10.14

S&P e-mini held firm Friday following NFP release as investors/traders appeared comfortable with the level of job creation, displaying that the Economy is making progress.

Today is Cycle Day 2 (CD2)…There is still room to continue rally…Odds of Rally > 10 = 84%; Odds of Rally > 20 = 45%; Average Range = 14.50; Max Range = 22.50; Possible High Zone = 1940.25 – 1942.25 based upon Average Cycle Rally; Possible Low = 2018 based upon Average Range on CD2. TargetMaster Range Parameters = 2037.50 – 2014.00

***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 (2033.50), THEN there is a 70% chance of reaching 2037.50 up to 1944.25…STATX Zone deep upside Xtreme measures 2047.50.

Scenario 2: Failure to convert PDH (2033.50) suggests further digestion of recent bullish price move, to find additional buyers should some selling develop. Initial “Key Support” will be the Three-Day Central Pivot Zone between 2019.75 – 2022.75…This zone has held firm is recent uptrend, so violation will be considered “first warning” of structural weakness. Downside levels measure 2018…2014…STATX Zone 2010.00 – 2005.50.

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 Eight
I can recover from any setback. I have an attitude of abundance. I affirm abundance in the universe. I know I cannot begin to count the stars. I realize the ocean doesn’t care whether I go to it with a bucket or a teaspoon. I know the market provides a river of opportunities. I invest in my capabilities. I will be happy with my results.



Leave a Reply