Trading with “Grinders”
Most of our favorite markets are range-bound going into Friday’s session, which makes our plan very simple – buying low, selling high, and fading breakouts…
But the most significant clue I’m seeing for tomorrow is the “grinder” we found on Gold because it gives me the opportunity to play both sides of the market.
Crude Oil is Bullish – But Watch the Range!
Crude Oil is bullish, but we’re trading in the high of yesterday’s trading range, which tells me I need to wait for a pullback or look for a successful breakout.
Knowing this, if we get the pullback off the high, my plan is to wait for the sellers to try and fail so I can buy into their stops.
E-Mini S&P is Coiled Up in a Triangle
E-Mini S&P is bullish with a neutral triangle pattern, which tells me to fade the breakouts using failure patterns at the highs and lows of the triangle.
The goal for tomorrow, however, is to try and get the market to attempt a breakout so I can buy the low (or sell the high) using the nested failure pattern.
Nasdaq is Bullish with Ascending Triangle
Nasdaq is bullish with an ascending triangle pattern, which tells me to look for buy set-ups below the triangle using the ‘2-legged pullback’.
Another option is to wait for the bullish breakout and buy into the stops of the sellers as they trade the fade the highs going back to the lows.
Gold is Bearish with a Grinder!
Gold is bearish with a strong run lower, which tells me to look for selling-opportunities after a ‘2-legged pullback’ and a re-test of the low.
But this bear channel has a “grind break” on it, which tells me I may have a shot at buying the over-extended trend and then selling it back down again later in the session on Friday.
Euro is Waiting for a Second Leg
Euro is bearish and trying to finish the ‘2-Try Rule’ just below the trading-range from yesterday, and I’m going to be looking for buying opportunities after they complete their second leg.
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