The market may be printing gains on the tape, but September’s volatility has been anything but kind to trend based traders as holidays, holy days, economic announcements and now quadruple witching have temporarily done away with the smooth moves and logical stops. The net effect has been to cause intraday gyrations that are often times frustrating, yielding small loss after small loss.

The daily charts suggest more volatility ahead, as reversal patterns seem to rule the roost. This might be a sign that the rally is ready to roll over, or simply an indication that the underlying volatility (the bad kind) will continue to plague us going into next week. Whichever the case may be, we will continue to trade lighter-than-usual share size until the setups and stops are more logical.

Among the reversal setups for Thursday, Ametek Inc (AME) looks ready to unwind some of Tuesday’s Fast Ball move, having left an Infield Fly short sale setup going into Thursday’s trading.

Ametek Inc


Bunge Ltd (BG) also had an Infield Fly daily pattern setup Wednesday. We will be watching for a move below the 99.81 low to signal a potential short-side opportunity.

Bunge Ltd


Dick's Sporting Goods Inc (DKS), a potential Sinker setup for Wednesday is also an Infield Fly candidate for Thursday.

Dick's Sporting Goods Inc


And Frontier Oil (FTO) left a Double Header reversal at new highs.

Frontier Oil


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Adrian Manz is the author of Around The Horn: A Trader's Guide To Consistently Scoring In The Markets and is co-founder of TraderInsight.com. Email him at adrian@traderinsight.com.