NEWS, EARNINGS, AND BUY BIAS: THE OPEN BO 10/22/13

PA developed a nice 50CB with employment news.  That informations was used to create the 50CB and the 50CB TL.  we had a rising (ascending triangle) bottom showing gaps to the TL.  This can be the aggressive entry looking for the Breakout.  You have downside measured, and the risk seems reasonable.

The alternative is to wait for the actual BO.  In this scenario, PA will 1.)  break or 2.) drift long/short around the resistance.  Once the market has created leverage against the opposite position, a BO will occur and help  fuel the run above the resistance or below the support.

The "wait" was triggered around BO+1.

The entry itself became a 50CB BO bar.  Our target is to work with the market for the BO-5 level and keep the stop at prior support levels.

We are in a leg 2 push hitting a +10 from the 50CB and extended past BO-5  around 1750-51.  Got point to look for a PB from initial longs selling into later buyers joining the party.

Breakout exits to the herd, and market is fueled for a PB tho the 50CB TL and the 50CB.  The test failed to break lower, and was the next optimal long positioning.

The obvious outlook to be aware of?  A second selling later in the market back to the original static levels around the 50CB.  This would fulfill a "DT" strategy.

Play the market, but be prepared for the surprise....