4 Favorite Trades for Friday

Where’s the Best Trade for Friday?

Buyers took control of momentum after this morning’s inflation report, which means I’ll be looking for ways to get long off support levels tomorrow morning…

But we’re also trading at major highs, so I won’t be afraid to get short if I see signs of exhaustion.  Exhaustion?  Let me show you my favorites for Friday…

E-Mini S&P (ES):

E-Mini Keys to Success:

• ALERT:  Rollover to the 09-21 is likely tomorrow, watch volume.
• The day started inside a narrow range, but inflation news sent prices racing higher, then lower, finishing the day trading sideways on top of the prior all-time high.
• Bulls have all the momentum, so they will be looking to buy failures at support below the recent range, or breakouts to new highs.
• Sellers, once again, don’t have many options, so they need to for a reversal off the highs or a 123-Reversal going lower.

Best Trades for Tomorrow: 

• Range = Failures, Rotation & Breakouts
• Buy the shallow trap
• Buy the seller failure at support below the range
• Buy the breakout to new highs
• Sell the reversal off the highs
• Sell the 123-breakout to new lows.

E-Mini Nasdaq (NQ):

Nasdaq Keys to Success:

• ALERT:  Rollover to the 09-21 is likely tomorrow, watch volume.
• Bulls got a strong spike higher after news this morning, there was a deep pullback and a retest of the high to “close the loop” for the bulls.
• Now the question is – can buyers keep this going?  Can they complete the measured-move to new all-time highs?  Or will we hold at these highs and go sideways?

Best Trades for Tomorrow:

• Trend = Continuations & Reversals
• Buy the shallow pullback trap
• Buy the deep pullback failure
• Buy the 123-breakout to new highs
• Buy the 2-try trap to new highs
• Sell the Buyer failure Reversal
• Sell the 123-Reversal

Gold Futures (GC):

Gold Keys to Success:

• Bears had control in the early morning, but inflation news sends the market racing higher into a range, which then got a breakout into what is likely a spike and channel.
• Buyers have the momentum, so they’ll be looking to get long off the low of the channel, below the range, and at new highs overhead.
• Sellers need to stay patient, waiting for a reversal off the high, or a 123-Reversal running lower.

Best Trades for Tomorrow:

• Trend = Continuations & Reversals
• Buy the seller failure at channel low
• Buy the seller failure below range low
• Buy the bull breakout to new highs
• Sell the buyer failure off ‘Battle Zone’ highs
• Sell the 123-Reversal back to major lows