Coach Mark here.

Periods of volatility are interesting. GAMMA is in play. Huge intraday ranges occur. The swings up and down can be maddening to traders. It can create a lot of missteps along the way if you are not expecting volatility.

Volatility is just that. It is volatile. Bears prematurely celebrate only to have a face ripping rally. Bulls celebrate that short-term rally only to have it quickly reverse to find themselves scrambling. These environments can be tremendous day trading environments but can leave a lot of traders chasing daily price amidst the wild swings.

Eventually a clear pattern will emerge in the coming days that provides outstanding opportunities for the bears or the bulls. Until then, expect a little of the unexpected and tactically plan accordingly. This has been the focus of my trading labs I have taught this week. There will be a moment coming up to pounce. Until then expect a little of the unexpected.

Chart of the Day: S&P 500 (/ES)

A classic rally coming off a big selloff creates some pressure on short-term bears. These rallies can be extremely strong and take a life of their own and watching intraday support levels becomes important for not just day traders, but other short-term traders looking for bullish and bearish opportunities.

Today’s line up

Traders Lounge 11 AM EST

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Halftime Report 12:30 PM EST

The Halftime Report starts at 12:30 EST and covers what news is driving the market, chart analysis from the movers and shakers of the day, and fun in a way that only the coaches at Tackle Trading can deliver.

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