Afternoon,

Finally, after a tough week, the Russell 2000 got it’s act together. Before I get started with the update, I want you to take a look at a daily chart of the NAZ 100. Here is the chart.

NAZ 100 Daily Chart

Click on chart to enlarge.

Why is this important, you might ask? The NAZ 100 is the 100 largest 100 stock of the NAZDAQ. Many traders believe that for the market to change trends, the NAZ 100 has to lead the way. If you will look at the chart, you will see that the NAZ 100 is breaking out to the upside. Hopefully, the will lead us out of the basing process that we have been in for the last  month. It is my belief that if I am correct that the market is finishing its basing process, the market will resume normal trading patterns. For what it worth…

Now on to the update. The Russell 2000 e-mini’s did trend nicely, giving us some nice set-ups. The first was a trend line break followed by a trader’s trick set up above the 56 EMA. The time was 10:27 am CST with a long entry of 717.30. The next trade happened at 11:15 am CST with another trend line break followed by another trader’s trick set-up with a long entry of 719.80. Here is the chart for trade 1 and 2.

Trade 1 and 2

Click on chart to enlarge. 

The last trade of the day was a trader’s trick set-up after a trend line break above the 56 EMA. The long entry was 725.80 at 13:42 am CST. Here is the chart for trade 3.

Trade 3

Click on chart to enlarge.

So hopefully, the market has changed and starts consistently allowing trades to set-up. Time will tell but my hope is the the fishing pond will become well stocked again.

Best regards,

Ron

This is not a solicitation to buy or sell. 
There is a risk in any investment