Afternoon,

As I expected from yesterday’s post, the market traded sideways today in anticipation of the Fed interest rate decision. When the announcement came (which was a historic cut of 75 basis points), the market reacted violently and finally shot to the upside giving us no entry before my 2:30 pm CST trade cut off time. Here is the chart for the entire day.

Dec 16 Whole Day Chart

Click on chart to enlarge.

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Afternoon,

The market was again very difficult to trade today. It sold off and then spent the rest of the day in a sideways base. Tomorrow, the FOMC will announce what they are going to do with interest rates. My guess is that the market will continue to be more challenging until that information is out. BE CAREFUL trading tomorrow.

The first trade of the day was after a trend line break to the downside underneath the 56 EMA followed by a trader’s trick set-up. The time of the trade was 9:21 am CST with a short entry of 455.70.

The next trade was another trader’s trick set-up after a trend line break below the 56 EMA. The time of the trade was 9:30 am CST with a short entry of 453.90. The trade stopped out for a 2 point loss.

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Afternoon,

Before I get started, I wanted to let every one know that I will be out of town tomorrow and the next update will be after the market close on Monday.

Today was another challenging day in the markets. The market spent a great part of the day in a large sideways base (see next chart). That means that there was no follow through to the trades that took place earily. The market finally broke to the down side but again the entrys were few and far between.

The first trade of the day was a trader’s trick set-up after a trend line break to the upside above the 56 EMA. The time of the trade was 9:33 am CST with a long entry of 473.30. The trade was up 1.30 points and the stop was moved to break even and the trade broke even.

The next trade was another trader’s trick set-up after a trend line break to the down side below the 56 EMA. The time of the trade was 10:36 am CST with a short entry of 467.80. The trade was up 1 point before stopping out for a 2 point loss.

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