Monday’s huge up-day provided some records setting gains for the Dow and S&P 500, and should hopefully stop the hemorrhaging for now. But one day doesn’t make a new rally, we will need a confirmation day to confirm a new rally, and instead got a reversal. One thing that was a bit concerning about Monday was that volume was lower than Friday.

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The VIX, which has entered record territory, finally pulled.

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I had DYN on my radar for Monday. Although it gapped down, it provided some great movement for day trading. I mentioned on Sundays post that this would only be considered for a day trade, and a good thing, since it gave back all of Mondays move today.

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Today looked like it was going to be another big up-day, but things changed, and we logged a big volume reversal. The NASDAQ closed down big as well.

I don’t like day trading, it doesn’t suit me well, but it’s pretty much what I’ve been doing in the market since Summer. I prefer to do my homework in advance, and have trailing stops do the work for me (See the Past Performance page to see some the runners from earlier this year). If I have to make decisions during the trade, they tend to be the wrong ones. But with this recent volatility, many swing traders have been getting clobbered. It’s still a day traders market, and I will stick with cash and with occasional day trades until conditions change.

Also, I am currently on a mini-vacation right now, and only watching the market in the morning. Although I planned to post each night, I may miss a post or two this week like I did on Monday.

Trade Ideas for 10/15/08:

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Good luck and good trading!