Today was a huge oversold relief rally. Where yesterday gave us the biggest one-day loss in the S&P 500 since 1987, today brought us its biggest 1-day gain in several years. Volume was much lower today though, which is concerning.

Not only was the market very oversold, but there is new hope surrounding the government bailout. We could see another vote this Thursday, which will likely cause a big reaction in the market. If the market rallies into an approved bailout, it could be a sell-the-news situation.

This very volatile, whipsaw actions has been the norm this month, which has made swing trading very difficult. This was my least active month in trading since starting this blog, and that’s a good thing. I had a few more trades than those listed in the Past Performance section, but those were in stocks that were not listed in advance. This whipsaw action will likely continue going into October, so it is still a day trading market. Historically, October has seen some of the markets biggest crashes. Namely, October 19, 1987 and October 28-29, 1929.

Trade Ideas for 10/01/08:

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Good luck and good trading!