Respect the Volatility
by Tony Rago
It’s Friday, and the trend remains lower across multiple time frames. Right now, we’re trading a volatility event, and today could easily bring more of the same. Yesterday was a great reminder of just how quickly this tape can move, with the 2-minute ATR stretching to nearly 130 points at one stage. Those kinds of conditions create opportunity, but they can also punish traders who overstay positions or force trades that aren’t there. This isn’t the environment to trade bigger just because the ranges are larger. If anything, it’s the opposite. Stay disciplined, respect the volatility, and let the market come to you.
From a directional standpoint, bears still have the ball. Rallies continue to get sold, and until buyers can start reclaiming key levels with conviction, the path of least resistance remains lower. That doesn’t mean every bounce should be faded blindly—it means letting price confirm the setup before committing. I’ll be watching the opening range closely to see if sellers maintain control or if buyers finally show some fight. Keep your process simple, manage your risk, and trade what you see instead of what you hope happens.
👉 Full breakdown is inside today’s Pre-Market Playbook.
Check it out here and trade it smart.
Until next time,
Tony
