The shakeout!

First off I know a lot may not want to hear this, but personally I can not wait until summer is over, just for trading purposes only. These summer doldrums have been painful at best, combine that with the consolidation patterns we have been having and you have chop that can chop chop your trading account if your not careful.

Anyway here’s the 5 minute chart of the day session, I said early on to take profits early as possible. We sold off pretty well off the bell, however the volume was light, meaning not a lot of participation. Chances are it was a shakeout of weak longs before making new highs. We rallied off of support 2 at the 1015’s, but we are still in a valid short setup around the 50% retrace of this whole move. I would be extremely careful opening any positions right here until we get a clean break either way. If this short setup becomes valid a target of around 1010 would be a legitimate target.

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