BULLS COME TO PLAY: AT THEIR PRICE 1/10/13

BOT TRADING SYSTEM

  Yesterday the PB at the close was discussed as being a positive move.  Last evening good news abound and PA took the cue, and continued the moved to the BO-5 level.  The bull continued in the Euro Zone trading with the extended bull run to the LB for today.  That is where the story for today gets interesting


[08:45] <CM> the gift that keeps on giving  overnight bull continues to run on fav news  us earnings china production
[08:48] <CM> we have been in the 1450-60 range since early jan    now another bo attempt after pb's lower caught bull interest
[08:49] <CM> extend y-day BOTs  65.25-61.50-60.25

When the Professional and Institution want to enter an extended trend, bull or bear, they will try for a better price. PA has PB's and it's as if you went on vacation and wake up and PA has significantly moved from your last visit.  A new run lower or higher must move in the opposite direction to allow that better entry for the P&Is.  That was out issue prior to the US open:  The overnight and Euro Zone run had pushed prices too high to interest new buyer.  Another way to look at it, bulls would struggle to push PA higher.  Part of the reason LB and the MB had a larger difference than the MB-SB.


[09:25] <X> is the distance from the mb to the lb greater because the outlook is bullish?

[09:41] <CM> distance greater because now bull will have to fight harder for a bo.   close to sb look for a pb  to find support for another run up
[09:42] <CM> ie a sb bo likely stronger than a lb  because investors  (P&I) will want a better entry value  for the 1500 run

[09:49] <CM> a gap to sb would be seen as a bullish intent  this selling to sb likely takes out stops  and opens door for P&I entries



Those entries began to show up at 1457.5, an important level from yesterday.  PA pushes a little more and develops a gap to the BO-5. (54.5 on chart actual was 55.25. A quick drawing error).

When the price was pushed down, the bulls could enter and reclaim the highs and be in a position to run a LB BO.

The Trade:

discussed in chat, rarely shown.  PA should be the focus, not  personal decisions.  But today was an excellent example of how P& I get better entries.

The entry level was around 57.5-58.  Is it the low? no.  Can PA push lower?  Yes.  But the level is an entry on the pullback when PA hits a low and reverses.  It is also the 50CB of B24.  This time, the rules were followed.  ( a FBO of a level tends to run to the opposite level for a BO.  A FBO at a BO level tends to reverse to the LB/SB from which it broke out.).


[15:30] <CM> per prior moved (stop) to mb move to 50% of mb-lb then another 50%     target moved up to 68.5
[15:31] <CM> 70.25 BO-5 see if we can get to mid range before the bell

[15:48] <CM> stop to the LB target still 68.5
[15:52] <CM> will exit around 3:58

PA hits the BO-5 in after hours and sellers entered at 71.5 area.