BULLISH READ, PA DELIVERS 7/13/12

BOT TRADING SYSTEM

 EARLIER in the week we were discussing that 32.5 was a long hold.  The level worked, and PA drove lower for better entries.

[22:20] <CM> the 32.25 lows converted to a +4 we now have a HL in play bulls will want 40-41 then another try on 1350

We hit lows and PA rose later for a range run and a LBBO.

  [22:02] <CM> after the stall at sbbo-5  we saw the range run  we should see attempt overnight on the lbbo-5  1337

The PA did hit the 1337 in overnight trading, and the following analysis was provided this morning in chat.

  [08:07] <CM> they had 4 attempts at lbbo-5  1337  also note  a 5t fail of the lb at 1332 longs has hit twice in the last 3 hours  bias still long

[08:07] <CM> also the lb is acting like the neckline of a h&s pattern

Then the break out was explained, including what an extended day would be.

  [08:23] <CM> from the bo point pa is expected to run +5  to +10  extended days +20

We got the extended day today!

The Long BOT was being a magnet for the PA.  We only had two potential stop outs over the prior two hours.  The market was preparing for a new long target.

[08:27] <CM> 1337 is lbbo-5   1332 is the lb  they had 2 5t hits to take out longs over last 4 hours  (the risk of going long at 1332)

[08:29] <CM> so if you longed at 3am or 3:45 est  the 5t hit   if long at 4:30  you almost hit the +5
[08:30] <CM> btw  42.5 47.5 next bull targets

[09:24] <CM> (x)  we had 2 hours of s/w action 2am to 4:30 bo  pa is bouncing around the LB  read:  mkt prep for a new run higher  but note the micro bear tl (channel) we are in

[09:28] <CM> also  note all mkts just flashed buys near lows

[09:37] <CM> there you go  +5     http://screencast.com/t/TfkGpTxizzZ

The next entry (or first if the open was not taken) would be a quality Pull Back.  We got that at B4-5.

[09:48] <CM> the next buy would be a quality pb

[09:49] <x> what's a quality pb? What makes it quality?
[09:49] <CM> 50cb of last bull bar..

This was around 40.25 for the long play in a rising market..  Mid day, so time for the beach, and a final note:

[12:49] <CM> enough fun for today  have a great weekend all  time for the beach..
[12:52] <CM> mid day s/w action  look for a pb this pm to prior level the bo-10 42 area  next bull target 52.75  so 10 point pm range

We got the 52.75.  A very nice bull day back to earlier targets.  A nice end to the week and vacation..