Risking Small to Earn Large

We’re headed into “Quadruple Witching” tomorrow morning, and with most of our favorite markets stuck inside ranges, the key to our success will be “risking small to earn large”

Crude Oil Wants to Go Higher, But Where’s the Entry?

Crude Oil is bullish with a wedge pattern, which tells me to wait for a deep pullback to the low of the Hidden Channel for a “risk small to earn large” opportunity going back to re-test the high.

If we don’t get the pullback, remember to stay patient and wait for the sellers to try the breakout and buy into their failures using the ‘2-Try Rule’.

E-Mini S&P is Bearish, But Look BIGGER!

E-Mini S&P is short-term bearish with a long-term bullish mindset going into Friday, which tells me to look for selling-opportunities up above the high of the range, while keeping my eyes open for seller-failures to buy the lows.

Knowing this, I’m focused on getting the sellers to chase a move lower, then buying into their stops after they try and sell the pullback.

Nasdaq is Attracting More Buyers – Stay Patient

Nasdaq is bearish in the short-term and bullish in the long-term, which is important to remember because we’re looking to sell above the range high, but keeping our eyes open for buying opportunities using seller-failures down below the low.

The ideal situation for buyers is to get the sellers stuck trying to sell off a rally higher, buying into their stops for an easy run back to yesterday’s high.

Gold is Bearish – But this Flag is Tricky

Gold is bearish with a flag pattern, which tells me to look for the breakout-pullback to the downside, as long as I can “risk small to earn large.”

Knowing this flag pattern is so close to the low, I’m also looking for a possible “failed flag” which means I’m waiting for the seller to get in trouble trying to sell above the channel highs for a short-covering rally all the way back up to today’s open.

Euro is Bullish – But Stuck in a Range

Euro is bullish and trying to re-test it’s high, but this short-term pullback the 13000 round number tells me that I need to wait for these bears to try selling this market before I look for buying opportunities into their stops.

With that said, id like to get a head-fake going lower, trap in the sellers, and look for a short-covering rally back to the highs.

“The struggles we endure today will be the ‘good old days’ we laugh about tomorrow.”e