3 Ways to Short the Pullbacks on Tuesday

We’re back in the action for the second week of March, and with all three of our favorite markets running lower today, I’ll be looking for ways to get short on the pullbacks tomorrow morning.  Here are three key setups to keep your eye on…

E-Mini Keys to Success:

• Buyers had a strong run higher to finish the session on Friday, leaving an open-loop for the bulls to close on Monday morning, which they did.
• Buyers retested the high and then reversed going back into the same range from last week.
• Bears Want to short the bounces going back to the range lows
• Bulls Want a reversal to go back to the highs

Best Setups for Tomorrow: 

• [UP] – buyer failure to sell (or) 123-Reversal to buy
• [DOWN] – 2-try trap to sell (or) 123-Reversal to buy
• [SIDEWAYS] – wait to buy low and sell high with failure setups

Nasdaq Keys to Success:

• Buyers finished last week with a strong run higher, giving the bulls an open-loop to close on Monday morning, which they failed to do.
• After seeing buyers fail, sellers take control and run price back through the range from last week, trying to complete the pendulum swing on the opposite side.
• Bulls Want to reverse the trend and retest the major highs
• Bears Want to sell the bounces above the range, or use traps going lower to the pendulum swing

Best Setups for Tomorrow:

• [UP] – buyer failure to sell (or) 123-Reversal to buy
• [DOWN] – 2-try trap to sell (or) crown reversal to buy after pendulum swing
• [SIDEWAYS] – sell high and buy low with failure setups.

Gold Keys to Success:

• Buyers “gap up” at the open, then swing back into the range magnet below, completing the pendulum swing target on the opposite side.
• Bears Want to sell the bounces on the way to the measured-move
• Bulls Want to reverse momentum back up into the range above

Best Setups for Tomorrow:

• [UP] – buyer failure to sell (or) 123-Reversal to buy
• [DOWN] – 2-try trap to sell (or) crown reversal to buy
• [SIDEWAYS] – sit on hands, wait to sell the pops with buyer failures