NEWS PLAYS & FADES INTO A RANGE DAY 1/6/12

THE US provided some good news in the pre-open pushing prices higher.  It looked as if the bulls were in control from a nice long run from last evening through the Euro Zone.  Then, more negatives from Italian Bond yields to Germany factory orders.  A few attempts to break back to the Upper Trading Range (UTR) but they failed at the LBOT.

Play the news play the range runs.

The market weakness can be seen visually in the decline TL angle and the PA selves.  Another look is revealing as well:

Regardless if you use TLs, bar counts, x bull x bear bars, MAs, etc. everyone will have an opinion as to the market read.  So many that it can become confusing as to which way is up, or down.

Search out what works for you.  Simplify it.  See that it repeats.

Personal preference is for the ranges.  Where are bulls/bears weak/strong, and where is PA in relationship to those points.  The Break Out Targets (BOTs) provide the information needed to play the range ( +4 points today) or BOs ( a BO-5 today).  Simple, and ahead of the daily PA.  Essentially, there were 7 key trading plays today.

PA rising (range run)      BO  rev-RR      rev-RR            rev-RR                RR          RR