I traded the YM today as it was a little more coherent than the ES contract and have included a DecisionBar chart so that you could see some of the trades I made. Obviously, it was a fairly easy afternoon, as the market made one short move and that started up for a long run. I added contracts as the rally continued, though you might notice that there was a relative lack of volume for this rally, which is cause for concern.

Of course, the investing world was agog about the possibility of a rate cut forthcoming tomorrow, and reacted very positively to that prospect. I don’t see a rate cut as any sort of solution to the economic problems we are enduring, but the prospect was enough to send the traders into a frenzy. Of course, we still have to sift through a sea of terrible earnings reports, and the credit issues that started this chaos are far from resolved. But, I suppose any news is good news in this environment, and the market lost it’s head in delirium. Personally, I find it hard to believe that any investor would take a long position in the near future….the economic outlook is somewhat less than rosy, and that is being quite kind.

I would refer you to an excellent Blog, Calculated Risk, for some insightful information on the credit situation as that editorial group is often right on the money.

On the other hand, if the market wants to dole out free money, I was happy to ride the tide upwards.