Trade Strategy 12.2.14

Early weakness lead to Scenario 2 playing out yesterday as price sold down to the 2048 handle where responsive buyers stepped in to support price. Early morning trade today has price higher by +6.25 handles. Yesterday low (2048.25) will need to hold any retest, otherwise additional selling may develop…Price will need to clear and convert 2059 handle for any further upside potential.

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 = 2069 – 73 zone based upon converting PDH 2064.00; Possible Low = 2037 .75 – 2035.00 based upon violation and conversion of PDH (2048.25); TargetMaster Range Parameters: 2059.50 – 2042.50.

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

Today’s Hypotheses:

Scenario 1: Price is currently at the midpoint of prior days range…IF price can continue to find buyers in sufficient quantity and aggressiveness, THEN there is a 55% chance of testing 2059 – 60 zone. Should price convert this level, odds favor a push back to 2062.50 – 2065.25 STATX and 3D CPZ.

Scenario 2: Sellers were dominant in prior days session…Should price break below 2052 handle, then odds increase retesting PDL (2048.25), IF this level is violated and converted, THEN additional selling is expected to accelerate a downward move to lower price targets between 2046.50 – 2042.50 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 Six
I am at peace with uncertainty. I know there is no such thing as a sure thing. I have no particular need to be right. I understand that being perfect has no place in trading. I am flexible. I am willing to change my mind. I am alert to scenario changes. I accept the information that tells me I am on the right track or on the wrong track.

PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS


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