Afternoon,

This market has been truly amazing. The DOW started out down 700 points and then rallied to be up over 100 points then sold off spending most of the day down 400-600 points. Then in the final hour of trading, the market rallied strongly to be up 260 points only to finish down over 100 points. EXTREME VOLATILITY!!! The Russell 2000 (TF)  chart below has 10 points between price levels on the right. That is the first time I have seen that big of a scale between price levels.

The first trade of the day was a trend line break followed by a trader’s trick set-up below the 56 EMA. The time of the day was 10:18 am CST with a short entry of 481.00.

The next trade was another trend line break below the 56 EMA followed by a trader’s trick set-up. The time was 10:42 am CST with a short entry of 477.70. The trade was one ticked in and stopped out for a 2 point loss.

The final trade of the day (as I stop trading at 13:00 pm on Friday) as another trend line break under the 56 EMA followed by a trader’s trick set-up. The time was 12:30 pm CST with a short entry of 474.20.

Here is the chart for trade 1, 2, and 3.

This is getting kinda scary. The DOW was off substantially again today. No end in sight as far as the down side. The volatility continues giving many opportunities to trade.

The first trade was a trend line break below the 56 EMA followed by a trader’s trick set-up. The time was 9:39 am CST with a short entry of 539.30.

The next trade was another treader’s trick set-up after a trend line break below the 56 EMA. The time was 11:39 am CST with a short entry of 531.20.

The final trade was another trend line break below the 56 EMA followed by a trader’s trick set-up. The time was 13:12 am CST with a short entry of 529.90.

Here is the chart for trades 1, 2, and 3.

Another very volatile day at the fishing pond. The FED, along with governments around the world, lowered interest rates by 1/2 point. One might think that would rally the markets. It did…for a few minutes before setting up a large swinging day. That is good for the day trader.

The first trade of the day was a trader’s trick set-up above the 56 EMA after a trend line break. Normally, I don’t like to take a trade after the market had made a large move.  The trend line break was low but the price went above the 56 and pulled back to the 56 EMA. I have said many times, I love a trade that pulls back to the 56 EMA. That is what made this trade valid. The time was 8:48 am CST with a long entry of 555.60. Here is the chart for trade 1.

Trade 1

 Click on chart to enlarge.

The next trade was another trader’s trick set-up after a trend line break below the 56 EMA. The time of the trade was 10:51 am CST with a short entry of 545.50.

Taking a look at the chart below, you will notice a trend line break with a nice looking trader’s trick set-up. The price was BELOW the 56 EMA so the trade was not valid.

The next and last trade was another trader’s trick set-up after a horizontal trend line break above the 56 EMA. The time of the trade was 12:51 pm CST with a long entry of 559.00.

Here is the chart for the last to trades.

What an amazing day. The market trend again today giving us 5 valid winning set-ups. 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 9:24 am CST with a long entry of 593.40. The next trade was another trader’s trick set-up after a trend line break below the 56 EMA. The time was 10:12 am CST with a short entry of 589.50. The third trade was another trader’s trick after a trend line break below the 56 EMA. The time was 11:03 am CST with a short entry of 588.30. Here is the chart for trade 1, 2 and 3.

Trade 1, 2, and 3

Click on chart to enlarge.

The next trade was a trader’s trick set-up after a trend line break below the 56 EMA. The time of the trade was 11:45 am CST with a short entry of  581.80. The final trade of the day was another trader’s trick set-up below the 56 EMA after a trend line break. The time of the trade was 14:00 pm CST with a short entry of 569.80. Here is the chart for trade 4 and 5.

Trade 4 and 5

Click on chart to enlarge.

So today was an excellent day at the fishing hole. It is good to know that we can make money in both up and down markets and in volatile times.

Best regards,

Ron

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

Wow! What a volatile day. After being down almost 800 points intra-day the DOW closed down 369.00. The bars were big and many had wicks. Still, using the trades taught on my blog, there were a couple of winning trades.

The first trade was a trader’s trick set-up after a trend line break below the 56 EMA. The time was 10:48 am CST with a short entry of 590.70.

The next trade was a bobber set-upat 11:45 am CST. There was a short entry of 583.00. The trade was up 1.90 points, with in one tick of our objective, and the stop was moved to break even. The trade broke even.

The last trade was another trader’s trick set-up after a trend line break below the 56 EMA. The time was 12:45 pm CST with a short entry of 580.70. Here is the chart of trade 1, 2 and 3.

Trades 1, 2 and 3

The market did rally into the end of the day but there were no set-ups. It is nice to know that even in these historic times our strategies continue to make money.

Have a great evening.

Best regards,

Ron

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

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

Today was another interesting day. The fist trade of the day was a “bobber” set-up.  We have not seen a bobber set-up in a while. The short bobber set-up requires 2 back to back red bars followed by a different colored bar (in this case green). The low of the diffenent colored bar can only be a maximum of 3 ticks lower then the previous bar. Entry is 1 tick below the different colored bar with a stop of 2 points and an objective of 2 points and a move to breakeven when the trade is up 1.50 points. The time was 8:48 am CST with a short entry of 662.90. The next trade was a trend line break underneath the 56 EMA followed by a trader’s trick set-up. The time was 9:30 am CST with a short entry of 655.00. The trade was up 4 ticks before stopping out for a 2 point loss. Here is the chart for trade 1 and 2.

Trade 1 and 2

Click on chart to enlarge.

Trade 1 and 2

The next trade was another trend line break below the 56 EMA followed by a trader’s trick set-up. The time was 11:24 am CST with a short entry of 651.60. The next trade was another trader’s trick set-up after a trend line break below the 56 EMA. The time was12:21 pm CST with a short entry of 645.90. Here is the chart for trade 3 and 4.

Trade 3 and 4

 The final trade of the day was another bobber set-up. This time the “different color” bar was yellow. The time was 14:24 pm CST with a short entry of 639.00. Here is the chart for trade 5.

Trade 5

Although today was way more volatile, there were still a few good catches. Looking forward to happy days at the fishing pond.

Best regards,

Ron

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

The market was crazy today. For most of the afternoon, the market traded in a large sideways base. My guess that the market participants are waiting for Congress to vote on the bailout of the US economy. Here is the chart for the end of the day trading.

End Of Day Sideways Base

Click on chart to enlarge.

There was really only one set-up for today. At 11:24 am CST, there was a trader’s trick set-up after a trend line break with an entry right above the 56 EMA. Here is the chart of the trade at 11:24 am CST.

Trade 1

Click on chart to enlarge.

Hopefully, the market will get down to trading in a more normal trading patten after the debate of the economy is settled. Until then, caution is the word of the day.

Have a great evening.

Best regards,

Ron

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

The market rallied today, making up about half of the hugh loss that it took yesterday. Volatility is the watch word for the day. There was a trader’s trick set-up after a trend line above the 56 EMA. The time was 9:24 am CST with a long entry of 662.40. The trade was up 1 point before stopping out for a 2 point loss. The next trade was another trader’s trick set-upafter trend line break above the 56 EMA. The time was 10:39 am CST with a long entry of 663.50. The next trade was a trend line break above the 56 EMA followed by a trader’s trick set-up. The time was 12:18 pm CST with a long entry of 665.80. Here is the chart for trade 1, 2 and 3.

Trade 1, 2, and 3

Click on chart to enlarge.

The last trade of the day was a trend line break above the 56 EMA followed by a trader’s trick set-up. The time was 14:00 pm CST with a long entry of 674.80. Here is the chart for trade 4.

Trade 4

Click on chart to enlarge.

Today was more difficult to trade as the market went into 3 sideways bases. There were a lot of TradeStation pivots, making the number of possible set-up increase. Still ended up with a nice number of fish.

Have a great evening.

Best regards,

Ron

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

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

Click on chart to enlarge.

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