5 Mistakes to Avoid on Wednesday

Lots of ‘traps’ on these charts tonight — don’t let them fool you…

We had another busy day in the markets today – both the Emini and Nasdaq had major reversals and appear to be setting up for another leg higher, and…

Gold continues to rotate beautifully back and forth inside a weekly range, with buyers gearing-up for another leg higher to complete the rotation…

The plan is simple – we’re looking to “trade the rotation” on all (3) three of these markets, and I describe all my favorite setups in tonight’s video…

But I have to warn you – it’s easy to see a handful of traps you’ll want to avoid on Wednesday.  Avoid these mistakes before they take back your gains…

E-Mini S&P (ES):

E-Mini Keys to Success:

• We made another big move today, suggesting a range may be coming tomorrow.
• Buyers made a strong run higher into a range today.
• Buyers have control, and will be looking for entries at support levels below the range, along with trading the rotation and potential breakout to new highs tomorrow.
• Sellers need to stay patient – they can sell a 123-Reversal pattern, or they can look for shorts off the major highs with exhaustion patterns.

Best Trades for Tomorrow: 

• UP – buy the 123-breakout (or) sell the 2-try failure off major highs.
• DOWN – buy the seller failure (or) sell the 123-Reversal

E-Mini Nasdaq (NQ):

Nasdaq Keys to Success:

• With back-to-back days with big moves, we expect a range may form tomorrow.
• Bulls made a strong run higher today and are now taking profit with a DEEP pullback off the highs (possibly a small range just below the highs)
• Buyers have control, and with all this bullish momentum we can assume they’ll be looking for longs going back to retest the highs and potential a measured-move.
• Sellers need to stay patient until we get a change in momentum; they can sell a 123-Reversal or look for shorts off major highs with exhaustion patterns.

Best Trades for Tomorrow: 

• UP – buy the 123-breakout (or) sell the buyer failure off major highs.
• DOWN – buy the seller failure (or) sell the 123-Reversal
• SIDEWAYS – wait for the range to develop, then look to buy low, sell high with failures.

Gold Futures (GC):

Gold Keys to Success:

• We’re rotating back and forth from top to bottom of a large trading-range.
• The overall move is bullish, so buyers have the edge and will be looking for longs off support levels below the range, along with breakouts above the highs.
• Sellers need to be careful because momentum will be very strong going into the highs, and buyers will be looking for longs off the lows.  Best to wait for a convincing breakout.

Best Trades for Tomorrow: 

• UP – buy the 2-try trap & 123-breakout (or) sell the buyer failure
• DOWN – buy the seller failure (or) sell the bear breakout
• SIDEWAYS – sit on hands to avoid the range middle, wait for a breakout