Afternoon,

Today the market trended nicely. There was a period time around the vote in the House of Representatives on the bailout bill that the market got extremely volatile. There was even a very unusual gap in the 3 minute and times that the matrix for the TF (Russell 2000 e-mini) froze. It is important at those times that to 1) Always use an OSO order and 2) only trade when the matrix resumes a more normal trading pattern. Here is the chart for the afternoon gap.

Afternoon Gap

Click on chart to enlarge.

The first trade of the day was a trader’s trick set-up after a trend line break above the 56 EMA. The time was at 6;48 am CST with a long entry of 648.10.  Here is the chart for trade 1.

Trade 1

Trade 2

Click on chart to enlarge.

As stated in my trading plan, I stop trading a 13:00 pm CST on Friday. The market sold off strongly after the Washington bill passed the House of Representatives. As I have stated before, the important thing for a day trader is to have a trending market. That is what we had today.

Have a great weekend!

Best regards,

Ron

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