With Crude Oil in a virtual free-fall with margin calls occurring on a daily basis, equities simply cannot overcome the negative momentum. As such, investors have continued to sell stocks in tandem with oil weakness…Until this has run its course and the final seller has been flushed out, expectation will be for more downside. Past shocks to the financial markets have lead to very sharp rebound rallies…So we all need to be on high-alert.

Today begins a new Cycle (CD1)…Odds of Decline > 10 = 71%; Odds of Decline > 20 = 41%; Average Range on CD1 = 18.75; Max Average Range = 21.75; Possible High = 2018; Possible Low = 1958.75

***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 hold above PDL (1974.50), THEN there is a 55% chance of retracing back up to 1988 – 90 zone. Conversion above this zone targets 2007.50 – 2010.25 zone. Deep upside extreme measures 2018 – 2020.75.

Scenario 2: Violation of PDL (2074.50) will force additional long liquidation…Downside targets are 1971.25 – 1967.50 zone…followed by 1966 – 1964…TargetMaster Range Breakdown Level at 1958.75, which is projected Low for today.

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.