Afternoon,

This market has been truly amazing. The DOW started out down 700 points and then rallied to be up over 100 points then sold off spending most of the day down 400-600 points. Then in the final hour of trading, the market rallied strongly to be up 260 points only to finish down over 100 points. EXTREME VOLATILITY!!! The Russell 2000 (TF)  chart below has 10 points between price levels on the right. That is the first time I have seen that big of a scale between price levels.

The first trade of the day was a trend line break followed by a trader’s trick set-up below the 56 EMA. The time of the day was 10:18 am CST with a short entry of 481.00.

The next trade was another trend line break below the 56 EMA followed by a trader’s trick set-up. The time was 10:42 am CST with a short entry of 477.70. The trade was one ticked in and stopped out for a 2 point loss.

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Afternoon,

This is getting kinda scary. The DOW was off substantially again today. No end in sight as far as the down side. The volatility continues giving many opportunities to trade.

The first trade was a trend line break below the 56 EMA followed by a trader’s trick set-up. The time was 9:39 am CST with a short entry of 539.30.

The next trade was another treader’s trick set-up after a trend line break below the 56 EMA. The time was 11:39 am CST with a short entry of 531.20.

The final trade was another trend line break below the 56 EMA followed by a trader’s trick set-up. The time was 13:12 am CST with a short entry of 529.90.

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Afternoon,

Another very volatile day at the fishing pond. The FED, along with governments around the world, lowered interest rates by 1/2 point. One might think that would rally the markets. It did…for a few minutes before setting up a large swinging day. That is good for the day trader.

The first trade of the day was a trader’s trick set-up above the 56 EMA after a trend line break. Normally, I don’t like to take a trade after the market had made a large move.  The trend line break was low but the price went above the 56 and pulled back to the 56 EMA. I have said many times, I love a trade that pulls back to the 56 EMA. That is what made this trade valid. The time was 8:48 am CST with a long entry of 555.60. Here is the chart for trade 1.

Trade 1

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