S&P broke out of recent trading range propelling price upwards to our Cycle Expansion Targets outlined in yesterday’s DTS: Trade Strategy 11.18.14 Slight pullback in overnight price allowing for digestion of recent gains. Having reached and exceeded cycle expansion targets, expectation will be for some two-sided trade during today’s session.
Today is Cycle Day 3 (CD3)…Price has exceeded all cycle targets…so the following “odds of 3D rally” is more rhetorical since they have already occurred.
Odds of 3D Rally > 10 = 82%; Odds of 3D Rally > 20 = 53%; Average Range on CD3 = 17.75; Max Range = 21.25; Possible High = 2063.75 based upon converting CD2 high; Possible Low = 2036.25 based upon average range on CD3. TargetMaster Range Parameters = 2059.00 – 2038.50.
***Note: The odds highlighted are NOT predictions or trade recommendations, rather a guide based upon historical observed occurrences.
Today’s Hypotheses:
Scenario 1: Having reach and exceeded cycle targets, price would need to clear and convert PDH (1954.00) to continue expanding range…IF this occurs, THEN additonal upside measures 2055.25 – 2057.25 STATX Zone; 2059.00 TM Range Breakout Level; then deep penetration zone between 2061.75 – 2063.75.
Scenario 2: Failure to expansion beyond PDH (2054.00), expectation will be for more two-sided trade action to absorb recent breakout…Initial support zone between 2045.00 – 2047 will be first test for responsive buying…Violation of this zone would suggest deeper pullback down to 3D CPZ 2040.50 – 2038.00.
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.
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS