It looked like more blood in the markets today, until news of a government entity to be formed that would take on banking debts. This news sent stocks soaring on massive volume. The three major indexes pretty much made up for their huge losses yesterday. Notice the tail, much like a bottoming tail that was made in the NASDAQ. The Dow and S&P both show similar tails.

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This is now day 1 of a rally attempt. Tuesdays rally attempt was taken out the very next day, and it could happen here. But the fact that volume was so incredible today is encouraging.

As pointed out in earlier posts this week, the VIX had been indicating that a rally could be near. Traders often looks for rallies in the market when the VIX reaches into the 30’s.

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A couple stocks that had charts posted here this week made nice moved today, one of them was HCBK.

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There are some other stocks that I am going to be watching, but I am not posting the entries for these in the Watchlist, as they really need some confirmation before I will enter these. I think they could be potential swing trade candidates. In this incredibly wild week, sitting out tomorrow (Options Ex) is not a bad idea either. Will see how it goes.

Trade Ideas for 09/19/08:

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Good luck and good trading!