BULL BREAK OUT DAY 1/29/13

BOT TRADING SYSTEM


WE began the day with a narrow range ( 3.75 points) with the middle BOT closer to the SB;  I.E. a break there would likely run the SB for a selling day.  PA was in a range run from about 8 A.M. EST and completed the range run at the open.  Here is an overview with some chat sprinkled in.

[09:35] <CM> am range run completed  test of LB  

Bar 3 and 4 were the first pullback at the test of the LB, and B4 began leg 2 for a test of the resistance at 1497.5

[09:44] <CM> fbo es shorts  b3 continued pb

[09:49] <Chartmaster> b4 leg 2 for bulls

[09:50] <Chartmaster> target 97.5


[09:53] <Chartmaster> in a lb bo now 97.5 t1
[09:55] <Chartmaster> 1500.5 t2  the bo-5



Then, news hits.  News is a novelty.  There are times the market seems to move ahead of the news giving credence to a leak.  Other times, news is a smoke screen.  Just an even for the pros and institutions to move the market.  Generally, I look for trapping in news. i.e.  the market will move in a "contra" fashion running trend stops, and drawing in orders from the opposition.  This happens for two reasons:  1.  to allow the P&I Group a better entry price and 2. get the opposition to help fuel the new drive by covering orders or selling their stops.


[10:01] <CM> read this as news trap  mkt wants to long  this will get stops out of the way  give P&I a better entry price to move mkt    enough shorts enter  they will fuel the bull as they cover..

The LB became the long entry, however it would be an "add to" nature since a better entry could be made at a lower price.  Think of it in terms of a conservative entry for the revived bull.

PA pushed toward the MB but gaped.  A bullish signal.  the P& I group would likely run the price higher and be fueled by the shorts covering.


[10:09] <X> ok, not in. stop order at 95.5...
[10:09] <CM> hint the mb is an entry watch
[10:10] <CM> buys ES @ 1493.75
[10:11] <CM> be stop if it fails


Pa hit the BO-5 and stalled at mid day developing an ascending triangle.  This was likely to break higher, but we have seen them fail and reverse when we have an exhausted run.  With the 5 minute EMA showing as support, the long was a lower risk entry.


[12:42] <CM> the ES breakout focus (chart deleted)
[12:46] <CM> tends to test +2 to +2.5  so 1502.5-1503  low buyers from b8-9 are around +7    likely exits +8 to +10
[13:09] <CM> 1502.75 

PA was stalling below the BO-10 at the end of the day and pulled back to the EMA.

[15:58] <CM> likely pop to bo10  as books clear


We go the BO-10.