BREAK OUT SWINGS 5/22/13

Today's open began looking like yesterday, and was played in a similar manner, and a  reference was made to the 5/21/13 blog post.  These are some of the charts posted as the trade developed.


HOW THE DAY DEVELOPED

[09:15] <CM> ES points of interest today  1667 SB  1669.75 LB  very tight range

We began with a very narrow range in the bull/bear bias levels, called BOTs:  Break Out Targets.  A narrow range (opinion) is associated with a break out day.

We had a mid range buy on bar 1 and bar 2 turned into a 50CB at the LB

[09:42] <CM> es a bo from mid range..
[09:42] <CM> also note lb is the 50cb that developed
[09:43] <CM> b2 a 50cb at lb

[09:46] <CM> b4 first pb  also touch of 45 tl

Buy entries are at the support (b1) the break out (b2), at a 50CB break and/or at the TL hold  (b4).  The expected run for the trend is a minimum of +5.

We now have the trend lines to guide the trade as we expect a gap to develop.  See 5/21/13 post for more on the terms.


[09:50] <CM> 45 hold (touch)
[09:52] <CM> similar to yday  gap developing
[09:53] <CM> 1674.75 is bo-5

The BO-5 hits and becomes another 50CB.

The reversal, short.  Began forming a H&S variation.  We also have the 50CB and BOT tool working together to fine tun the trade.

The 45TL's long and short off the 50CB's.

[10:59] <CM> nice day  party may be over  look for range bound into pm session

Flat (range bound) it was until the sellers struck in the PM to bring more excitement to the market.  We end with a +10 to -20 swing.