Afternoon,

 Today was possibly the most interesting day I can remember in a long time. The Russell 2000 opened down and rallied up 12 points. There was a bobber set-up at 9:12 am CST with a long entry of 720.10. The market then sold off 6 points. The interesting part of that is that both moves were almost straight up and straight down. Because of yesterday afternoon’s strong rally, the 56 EMA was very far from the price. Here is the chart for trade 1.

Trade 1

Click on chart to enlarge.

Because of the fact that the 56 EMA was away from price for the first half of the day and the fact that there were very few TradeStation Pivots, the trades that normally set up…didn’t. There was a trader’s trick shortafter a trend line break the occurred above the 56 EMA…not valid. Then there was a trader’s trick set-uplong after a trend line break that occurred below the 56 EMA…again not valid.  Here is the chart for both of those trades.

Not Valid Trade Set-ups

Click on chart to enlarge.

Finally, just to show you I am not crazy, the market traded in a big sideways base, with no more set-up for the day. So for today, there was only 1 trade set-up…very unusual. Here is the chart for the big base.

Big Base

Click on chart to enlarge.

A very unusual day to say the least. The summer doldrums are driving fish into deeper water.

Have a great evening.

Best regards,

Ron

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