Tuesday 3-15-2011

The read that 126 and 128 open put options would help move the market lower was beneficial to those in the room yesterday and last evening.  Traders need to understand, if there were no issues in Japan, the market would find another story to push down the price action.

Tuesday was viewed as a bullish day.  The price levels were simply too attractive to bulls, and we had a steady bullish bias into mid-day.

Range bar look

Some of the early trades taken in the room involved some of our favorite setups.  Reversals (XRB) combined with stalls (MAXT).

Another setup is trading break outs after trend reversals (TR) or trend reversal test (TRT) occurs.

Another favorite is a bracket trade when a break out is anticipated.  The bracket was established above and below the consolidating PA.

In this case, the long was established at 1262.