Afternoon,

WOW! What a day. The market has been reeling from several brokerage firm problems as well as the government guaranteeing a loan to AIG for 85 Billion. The volatility that this has created is great for the day trader. Trading the new ICE exchange Russell 2000 e-mini’s (TF), there were 4 set-ups and 4 winning trades. The first trade was a trader’s trick set-up after a trend line break below the 56 EMA. The time was 9:30 am CST with a short entry of 691.40. The next trade was another trend line break followed by a trader’s trick set-up below the 56 EMA. The time was 10:00 am CST with a short entry of 683.90. Here is the chart for trade 1 and 2.

Trade 1 and 2

Click on chart to enlarge.

The next trade was another trader’s trick set-up below the 56 EMA after a trend line break. The time was 12:24 pm CST  with a short entry of 677.70. The third trade was another trend line break to the upside followed by a trader’s trick set-up above the 56 EMA. The time was 13:39 pm CST with a long entry of 682.10. Here is the chart for trade 3 and 4.

Trade 3 and 4

Click on chart to enlarge.

It is difficult to watch the market sell off as much as it has been  (and I am not certain that it is finished), but it is good to know that we as day traders have the ability to catch a few fish in either direction.

Have  a good evening.

Best regards,

Ron

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