You have often read my admonitions about hanging in the markets around 7:30am, especially when there are some important Fed announcements in the offing. Many times, the action can be so fast that you will end up blowing straight through your stops. Check out the market movement at 7:30 this morning and be glad you weren’t long:

disaster on the ES emini chart in pre market trading

The market cliff dove, and blasted its way downward. This is a 5-minute chart and most of the movement came in the first minute.  Now for the rest of the day:

ES emini action during trading hours

The market never really found itself after this mornings retail and employment reports and moved up in a protracted trend, but not after some real fireworks early on.  The market had been moving steadily north all night and the economic news sent it into a short selling period, which I avoided participating in.

Again, watch those 7:30 announcement dates and make sure you are not an unwilling participant in a violent market swing.    Couple of nice trades today, and then a trade that I bailed on early.  I chickened out….