1370 was the preferred buy area for longs as they ran PA to roughly +9 in overnight trading and to +10 just prior to the US Open.
The plan for the day would be to watch for a direction with a FBO reversal, i.e. bear selling reversing to bull buying. We saw that in the first two hours of the market as PA ran the ranges selling and buying.
B1 actually was outside the range and it was B2 that broke short into the range. It was B2 that also established a 50CB that was regarded as an aggressive short for the day, as PA struggled to go Long BoT BO.
The PM alert was simple: watch PA for a bait and switch by professionals. PA begins a move and they quickly reverse the action. This reversal is fueled by 1. wrong side stop outs/exits, and 2. jump on the bandwagon.
Some aggressive longs scored in the PM (2 PM area EST) as PA bounced at the Short BoT and once again PA runs to the B2 50CB: the switch. Bears got their SB5 this time.
At the end of the day, we are back in favorable buy areas. (see 7/31/12 post).
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