Trading volume was sure weak last week as many traders take time off to enjoy the closing of summer. Light volume can also increase volatility, which is great for stock trading. For you W.D. Gann trading fans out there, you’ll note the S&P 500 is trading 180 weeks out from the low in March of 2003. On the Gann wheel this point is opposite in time, and could signify a potential turning point for the stock market. Trading is done with the technical patterns the market gives us. Will we see an end of month window dressing spike up into the resistance of April and May? Time will tell. That would help the MVV trade.

Today, MVV moved in the direction of the trade. 1/2 the shares of this ETF were sold for 1+ R. The other half will now have a stop .16 under the day’s low. The target is still around 73.

Today’s bout in the stock market brought MVV to the screen. MVV is the Ultra Mid-cap 400 x 2. Well, there’s more information in the description at Proshares, ‘The Ultra MidCap400 seeks daily investment results, before fees and expenses, that correspond to twice (200%) the daily performance of the S&P MidCap 400 Index.’ So we’re looking at the long version of the MZZ ETF that was recently traded online. ETF‘S are tradeable securites categories originated by the American Stock Exchange. Again, when trading stocks, ETF’s, futures, etc., it only matters what the patterns show technically. All the information needed is in the chart. Ok, so let’s look at the MVV.

Basically this looks similar to the trade we took in MZZ last week. A BL2, trading first made a higher-low pivot followed by a higher-high candlestick, triggering that the trade should be entered. A stop was placed a penny below the day’s low for MVV. R was = to aound 1.15, and a target set at 73 where the downtrend resistance sits. Trading was executed in MVV, and will be traded by moving a stop to the day’s low after next session. Note how the MZZ ran to it’s trendline rather quickly.

With the information given in both stock charts, the trade should be played. We’ll see what new information the stock market gives us Monday.