Trade Strategy 12.10.14

Heavy aggressive selling continued in yesterday’s session pushing price down to 2033.75 deep extreme within our STATX Zone which was projected in Scenario 2 of DTS 12.09.10. Strong short-covering reversal sent prices vaulting back 27.50 handles in the afternoon session to settle near highs. Recovery back above Cycle Day 1 Low (2053.75) places this cycle marginally bullish…Price will need to stay above CD1 Low to confirm bullish cycle.

Price has struggled to make any further upside progress in overnight trade…Currently trading down 4.50 handles at 2063.25. Today is Cycle Day 3 (CD3)…Odds of 3D Rally > 10 = 82%; Odds of 3D Rally > 20 = 53%; Average Range on CD3 = 17.75; Max Range = 21.25; Possible High = 2070.50 based upon penetration of CD2 high; Possible Low = 2039.50 based upon max range observed on CD3.

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

Today’s Hypotheses:

Scenario 1: Price needs to stabilize above 2048 handle with responsive buying to increase probability of further upside advancement. First objective is to convert PDH (2060.75)…IF successful, THEN there is a 65% chance of price reaching 2062.50 – 2064.00 3D CPZ. Above this zone targets 2069 – 2071.75.

Scenario 2: Failure to convert PDH (2060.75) suggests yesterday upside was just short-covering with no new long commitment. Initial support on pullback will be 2048 handle where there is an expectation of buy response. Failure to illicit a strong response suggests sellers are dominant, which then targets retest of key 2042 – 2044 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 Twelve
I am disciplined. I behave in a way to reach my goals. I do what I intend to do. I have the intent to win through right actions. I will be patient for patterns to emerge and mature. I am decisive. I decide easily and act promptly. I act in the right way and right on time. When there is nothing to be done, I will wait.

Leave a Reply