BULLS TRY AND FAIL IN THE PRE-OPEN 10/9/12

BOT TRADING SYSTEM


FIRST, let's look at plain Jane:

Not very interesting.  I suppose you could play the EMA break.


SUPER SIZED (PRE-OPEN)

The market was selling in the Euro Zone but found support just below the short BOT (SB).  A nice PB by the bulls establishing a TL, pushing PA up into a range run, and creating some separation (gap) to the SB and the TL.  But about the same distance above the long BOT (LB), as compared to PA below the SB, we see a sell signal reversal.  RANGE BOUND.

Short selling back to the SB  and exit as the range run was completing.


THE DAY

The selling stalled as a SB Wedge developed.  The bias was for the shorts, with a trend continuation expected.  New short ran for a +7 and continued beyond the target to hit a SB BO 5, and a SB BO 10.

A few CT longs and the day was finished.


AFTER HOURS

PA continued to the SB BO 15



THE DAILY

We discussed the shorting action last week.  PA has now pulled off the TL.  As is, shorting has the untested 50CB down around 1410-15.  We are near the prior support with a double resistance top.  I'm partial to the selling to establish better long enter positions which will break the top into the 1500's.  All we do is play what is given, and wait for the pros to pull money off the side back into the markets.