4 Ways to Short this Market (and 2 Reversals!)
Well that escalated quickly, wow!
Everything’s bearish going into Thursday morning, and with such a strong move lower today, we know sellers will be waiting to short the next pullback…
But where’s the best entry location, and what’s the signal?
What if we go sideways instead? Or keep going lower overnight?
Not to worry – in tonight’s video, I’ll show you my (4) favorite ways to short a strong bear market. (and 2 bonus reversals!)
E-Mini S&P (ES):
E-Mini Keys to Success:
Price began the session chopping back and forth inside the weekly range, but this afternoon’s FOMC Minutes sent price racing lower to the 4700-round number.
With such a strong move lower, it’s safe to assume that sellers will be looking for ways to short the next decent bounce off the lows.
I like to look for 4 types of pullbacks following days like these: Shallow traps, modest buyer failures, deep nested failures, and 2-legged pullbacks.
It’s also important to remember that big moves today usually mean sideways ranges tomorrow.
E-Mini Nasdaq (NQ):
Nasdaq Keys to Success:
Nasdaq stumbled around to begin the day, but sellers eventually took control and made a strong run lower, finishing today’s session right at the lows.
With such a big move down today, we can expect a sideways range tomorrow at some point and sellers will be looking for selling opportunities on any deep pullback off these lows.
If price continues to push lower, the key will be finding a new channel and waiting for your opportunity to short the first bounce off the lows.
Crude Oil Futures (CL):
Crude Oil Keys to Success:
Crude Oil buyers took control with a breakout-pullback going higher this morning, but sellers eventually got their hooks in this market and price reversed lower with the rest of the markets today.
We have a lot of bearish momentum into the close which tells us to be looking for shorts on the next good pullback off these lows. That big range below us (76.40) is an easy price-magnet for the bears.
