THE TREND IS YOUR FRIEND & MEASURE YOUR CT PLAYS 6/5/13

TRENDS will offer the better trade, but counter trend plays at key support can be played if you measure your expectations.  Today  the CT plays were tempered with a two pint expectation, with an eye on potential reversals at key support that could provide the +8 to +10 run.

Once the LB failed, PA was expected to run the range to the SB.  Price remained under the 50CB trend line and had gaps to the EMA.  A second TL developed and the bulls had difficulty breaking the 50CB channel.

First major PB for the long was at B11-12 with the +2 restriction.  This also allowed for new bear entries to the BO-5

Next: B19-21 to the bear 50CB channel.  Again, a new look for the bears.

B40-41 bounce at BO-15 support.  Got to upper TL of channel for the +8 then failed.

The last, the reversal at B60.  We noted the support at BO-20 (1607).  Again, go with the +2 and look for another reason to long as buyers run to +8 to +10


CT is not bad, in fact it needs to be part of your trading tools.  The trend, however, will provide  the bulk of your gains.

Worth stating again:  in a transitional market, long/short trades go from easy to hard, and Short/long trades go from being hard to easy.  Trend to CT to trend.....