Stock Market Review 8/21/2011

Evening folks. Crazy week in the markets as the indexes were down 4-6 percent accross the board.  Seemed like once we started reversing every mini bounce attempt got sold hard.  At this moment a retest of lows looks imminent.  The action itselft especiallyin the beginning of the week was very choppy and hard to trade as we started nudging into our first levels of resistance.  Then thursday we had a big gap down and then a big trend day in the markets that continued into the close on friday.  At this point we are in bear market trading and we will use that playbook.  This means very little swings unless its a low risk high reward situation.  Most of our trades will be scalps and daytrades.  We can still make a good income in this market as long as we recognize that this isnt 6 months ago when things were easy.  It requires different tactics and methods to be successful.  We have a big fed meeting in Jackson this week and the markets will be looking very closely to what comes out of that meeting.  the market has been addicted to monetary stimulus for so long …  qe3 is already on the mind of everyone.  Its important not to be too heavily positioned in the market eitherway as everyone thinks the market will rally hard on any qe3 announcement but in this market but that by no means means anything as we could do the exact opposite of that.