Afternoon,

WOW!! The Dow sold off 737 points today on news that the House of Representatives did not pass the bailout bill. During the first part of the day, there was a trend line break to the down side below the 56 EMA followed by a trader’s trick set-up. The time was 10:30 am CST with a short entry of 683.30. Here is the chart for trade 1.

Trade 1

Click on chart to enlarge.

During the middle of the day, the announcement came the the House Of Representatives did not pass the Financial Services bail out deal. The market became extremely volatile. Here is the chart for that part of day.

Bail Out Announcement

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The market finally settled down and had a trend line break to the down side below the 56 EMA. There was a trader’s trick set-up at 14:12 pm CST with a short entry of 664.50. Here is the chart for trade 2.

Trade 2

Click on chart to enlarge.

So even with the large swings, our strategies continue to preform. The key with this type of market is to be patient and not to make up  trades. Here’s to more good time at the fishing hole.

Best regards,

Ron

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