Afternoon,

 Wow, what a strange day! The Russell 2000 futures opened down 29.30 points. That was up from the actual overnight low. The FED lowered key interest rates by 75 basis points (3/4 point) and the market took off for the moon, ralling 26 points in the first 24 minutes. It has been my experience that on days like today, you need to be very patient. After bouncing around for another 30 minutes, the market finally settled down and had a trend line break to the upside  at 9:24 am CST followed by a trader’s trick set-up at 9:39. Another trendline break to the upside occured at 9:42 am CST again followed by another trader’s trick set-up at 9:51 am CST.

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Afternoon,

Volitility helps the day trader and we have certainly had a lot of volitility lately!! Let’s hope that it continues. A early trendline break to the downside lead to a trader’s trick set-up at 9:12 am CST. The market continues straight down finally finding some buying support around 9:33 CST. A rally back to the 56 EMA and between a 50% to 61% fibonacci retracement met with resistance. A trendline break to the downside at 10:18 CST lead to a very nice trader’s trick set-up at 10:33  and a bobber set-up at 10:51 CST. A question I often get is “Ron, can I take a bobber set-up right after a trader’s trick set-up?”  The answer is ABSOLUTELY!! The trader’s trick is, by definition, a trade that takes place at the beginning of a trend (trendline break is the first criteria). I developed the bobber trade because I would sometimes miss the entry of the trader’s trick trade and wanted to find a way to enter the already existing trend. As a side note, you may still be the trader’s trick trade (if you entered there) when you get a bobber set-up.  

The market then bottomed out at the 127% fibonicci level, turned to the upside. After basing for about an hour, the market broke to the upside above the the 56EMA and was followed by a trader’s trick trade at 12:27 pmCST. After rallying to meet our objective, the market again reversed course breaking a tredline to the downside at 13:12pm CST. A nice trader’s trick set-up at 13:24 pm CST again met our objective.

Again, volitility is our friend. Use it to your advantage.

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Afternoon,

Today was a very interesting day dropping at the open only to rally for the 1st 5 bars. Then the maket turned right around and gave us a bobber set-up at 9:03 CST. After a nice trendline break to the upside at 10:00 CST, we had a very nice traders trick set-up at 10:18 CST. The market continued its upward trend, then based for a while from 11:00 to 1:00pm CST. (I will write a post regarding trading times of day in the near future…stay tuned). Another nice trendline break to the upside  at 1:06 CST lead to a traders trick set-up at 1:27 CST. The market then rallied to the 127% fibonicci level on the day. This level is usually a very good turning point for the market. If the market breaks the 127% fib level, the next stop is usually the 161% fib level. But in this case the market turned around to the down side and broke a trendline back down. A bobber set-up at 14:48 pm was a possible trade but I don’t like to take trades that late in the day (it did make its objective though). All in all, today was a good trading day as all set-ups made their objectives.

Here’s to catching a whopper!!

Regards,

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