Trade It (or) Fade It?
Markets are still reeling after this week’s early round of earnings reports, and with most of our markets now re-testing their weekly highs and lows – the big question on my mind this evening is – “should I trade it, or should I fade it?”
Crude Oil is Bearish, But Can We Trade It?
Crude Oil is bearish into a small trading-range this evening, which tells me to look for selling-opportunities using buyer-failures up at range-expansion levels waiting overhead.
And speaking of overhead resistance, there is a major trend-line coming down overhead as well, which makes for an excellent location to “fade” the next move higher.
E-Mini S&P is Bearish & I Wanna Fade It!
E-Mini S&P is bearish as the bulls appear to be taking profit off their weekly highs, but we’ve seen this story many times before – reminding us that this is most likely just a deep pullback in this overall bullish trend.
Knowing this, I want to buy the pullback, but I still need to respect the momentum of the sellers – so the best plan of attack is to wait for the “nested” failure set-up to trigger the long-side going back up to re-test the high.
Nasdaq is Bullish, But We Need More Proof!
Nasdaq is bullish and just re-tested the weekly highs on a strong spike higher, which tells me to look for buying opportunities, but I need to wait for more information because these highs are the last place I want to start buying.
Keeping that in mind, I’m waiting for a 123-Breakout for confirmation that I can trade it – but if the buyers struggle at these highs, I’m looking for a ‘2-Try Rule’ buyer-failure to fade it back down to the lows again.
Gold is Bullish and Hunting for the Measured Move
Gold is bullish after a beautiful 123-Reversal off the weekly lows, which tells me to look for buying opportunities at the intersection of a new Hidden Channel and reversal-line tomorrow morning.
And don’t forget – the high of the monthly range is just a few points overhead, which reminds us NOT to chase this market higher, waiting patiently for bear-traps is a much better strategy.
Euro is Bearish, But Look at the Overshoot!
Euro is bearish with an “overshoot” at the low of the weekly channel, which is a big clue, because it tells me to look for one of three specific situations tomorrow morning.
The most likely scenario out of those three will be the range, which tells me to look for selling-opportunities using the 2-Try Failure pattern in combination with the high of the channel for reliable selling-opportunities back down to the lows.
“A goal is not always meant to be reached. It often serves simply as something to aim at.” – Bruce Lee.
