Afternoon,

The DOW was down 205 points, the S&P 500 down almost 17 points, while the NAZ spent most of the day up 10 to 20 points and the Russell 2000 did the same. What does all of this mean??? Very frustrating, cross-current markets. As I have been saying recently, when that situation develops, trading becomes treacherous as traders try to decide which index will win out. During times like these, it is important to be extremely selective in deciding what trades to take. The first part of the day saw large moves up and down and did not actually have a valid set-up until 12:09 pm CST. There was a trader’s trick set-up at that time after a trend line break above the 56 EMA. The long entry was 716.40. Here is the chart for trade 1.

Trade 1

Click on chart to enlarge.

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Afternoon,

Another very interesting day. The Russell 2000 and the NAZ were very weak today and the S&P500 and the DOW were very strong causing strong cross currents as market participants to wrestle with which way they ultimately they want to take the market.  Trade 1 was a trader’s trick set-upthat happened at 11:15 am CST with a short entry of 716.80. The trade happened after a trend line break to the down side below the 56 EMA . The trade took .60 points heat before making its objective. The next trade occurred after the market made a strong run to the down side. There was bobber set-up that occurred at 11:45 am CST with a short entry of 711.90. The trade went up and down before finally making the objective. Here is the chart for trades 1 and 2.

Trades 1 and 2

Click on chart to enlarge.

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Afternoon,

 I know that I am beginning to sound like a broken record, but the Russell 2000 e-mini were again hard to trade today. I have a couple of charts to illustrate my point. After an initial run up, the market went into 2 sideways bases. Here is a chart for the sideways bases.

Side Ways Bases

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