Ramp it Up!

by Larry Levin

The action is furious around the floor of the Chicago Mercantile Exchange. The last couple of days have really ramped up the volatility.

If you look at the VIX (The volatility index) jump up almost 20%. What is that telling us? It's been really busy around here lately and there have been a lot of great trading opportunities.

Ben Bernanke, the credit situation, and even $100 Crude Oil is all contributing to some very solid action in the stock indexes. But remember as I always say: With big opportunity comes big risk.

Don't be surprised to see the S&P 500 futures trade below the 1500 level this week as it seems pretty much a sure thing that this market wants to see what is below that level (more selling maybe?)

Real Time Trading Signals*for

Trade Date: 11/1/07

E-Mini S&P Trades*
(before fees and commissions):

8:31 B/A Sell 8.50 = +.75,+5.75,+4.25

10:28 ID VA Buy 99.25 = -1.25 all

12:56 Ft Buy 9.50 = +.75,b/e

E-Mini Russell Trades*
(before fees and commissions):

1) Buy @ 10:07am at 796.8 = +.4, +1.0, b/e

2) Buy @ 10:27am at 794.2 = -1.1, -1.1, -1.1

3) Sell @ 10:31am at 793.3 = +2.2 (1 lot)

4) Sell @ 10:47am at 795.0 = +.5 (1 lot)

5) Sell @ 10:52am at 795.3 = -1.2 & -1.2

6) Sell @ 10:58am at 794.7 = +1.0, +1.5, b/e

7) Buy @ 11:17am at 795.1 = +.5, +1.0, +2.9

8) Buy @ 11:48am at 800.3 = -1.1 (1 lot)

9) Buy @ 12:34pm at 800.5 = +.5, +1.2, -.5

10) Sell @ 12:46pm at 799.9 = -.7, -1.3, -1.3

11) Buy @ 12:56pm at 800.4 = b/e, b/e, -1.0

12) Sell @ 1:07pm at 799.9 = +.4, +.7, b/e

13) Sell @ 1:15pm at 800.5 = +3.5 (1 lot)

14) Sell @ 1:28pm at 800.1 = +.5 & +4.0

15) Sell @ 1:50pm at 796.5 = +3.2 (1 lot)

16) Sell @ 2:02pm at 794.1 = b/e (1 lot)

17) Sell @ 2:21pm at 797.2 = +.4 (1 lot)

18) Buy @ 2:47pm at 797.9 = b/e, +.5, +4.0

Sign up as an AvidTrader Member to receive "The Technician" Value Area's each day. The market then has an 80% chance of filling the Value Area. Many traders familiar with the Value Area and the techniques that go along with it use it to help them decide what trades to do each day. Join and see how this technique can help you trade more successfully!

Log in for Larry's Daily Trading Tip each day too!