Trade Strategy 11.20.14

Early weakness in S&P e-mini found responsive buyers within the Three-Day Central Pivot Zone (3D CPZ) as laid out in yesterday’s DTS: Trade Strategy 11.19.14. Failure to expand the range to upside shows internal price weakness in the short-term…hence, expectation is for some price weakness today as a new cycle begins.

Today is Cycle Day 1 (CD1)…Odds of Decline > 10 = 71%; Odds of Decline > 20 = 41%; Average Range on CD1 = 18.75; Max Range = 21.75; Possible High = 2059 based upon conversion of CD3 hih; Possible Low = 2028.00 based upon average decline observed on CD1; TargetMaster Range Parameters = 2055.25 – 2038.25.

***Note: The odds highlighted are NOT predictions or trade recommendations, rather a guide based upon historical observed occurrences.

Today’s Hypotheses:

Scenario 1: IF price clears and converts PDH (2050.50), THEN upside measures 2053.00 up to 2057 with upside extreme at 2059.00.

Scenario 2: Since today begins a new cycle (CD1), trade expectation favors the sell side probe for a new secure cycle low. Buyers have indeed been responsive to recent selling, but have appeared to become less and less aggressive…So the potential for more downside has increased if buyers decide they have enough contracts. Levels to be mindful of on downside are: 2036 – 38 zone…layered levels between 2036 – 2031.50…STATX Zone between 2028.75 – 2024.25.

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.


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