Avoid These ‘Traps’ on Non-Farm Friday
Non-Farm Friday is the biggest news event we get each month, which means tomorrow is a big opportunity to finish the week and start November on a high note…
But we’re seeing a lot of RANGES on the charts this evening which can be tricky to navigate if you don’t have the right strategy…
So let’s review the best set-ups to look for, but more importantly, the biggest traps you need to avoid to finish the week in the green – are you ready?
Crude Oil Traders are Fading the Breakouts
Crude Oil is bearish and trading sideways with a range, which tells me to buy low, sell high and avoiding the middle, while focusing on failure set-ups to catch the breakout traders on the wrong side of the market.
And since the momentum is bearish, I’m watching a cluster of resistance levels up around 54.50 for sell set-ups going back down into the range again.
E-Mini S&P Wants to Swing Back to the Highs…
E-Mini S&P is bullish and headed back up into the range from the beginning of the week, which tells me to look for buy set-ups using seller-failure patterns down below the low of the range tomorrow morning.
I’m also watching to see if the bulls can pick-up momentum running higher, because if they can run through this range, that tells me to look for a Hidden Channel pullback and a re-test of last night’s high at 3055.
Nasdaq Wants to Breakout, But Can They Get It?
Nasdaq is bearish and trading sideways with a triangle/range, which tells me to fade the breakouts, buying low, selling high, and using failure patterns to capitalize on failed breakouts.
But don’t forget about that news tomorrow morning, which could easily give us a breakout of this range, and if so, I’m looking for a 123-Breakout into Hidden Channel pullback.
Gold Bulls are Waiting for the Pullback, But Where?
Gold is bullish and trading inside a narrow trading-range, telling me that buyers are finally running out of momentum after two strong bullish days going higher…
Knowing this, I want to avoid buying high and wait for buy set-ups down below the range in the battle-zone, where I’ll be looking for failure set-ups to buy into the stops of the breakout sellers.
“Expect the Best, Prepare for The Worst, Capitalize on What Comes.”
