5 Set-Ups for This Short-Covering Rally
They finally got the Trade Deal signed this morning, and now the markets are responding, many with strong short-covering rallies back up to re-test their highs…
But the big question on my mind is – where’s the best entry set-up to capitalize on this move? You don’t have to look very hard, they’re easy to find, let’s get started…
Short-Covering Rally on Crude Oil…
Crude Oil is bullish and trying to re-test the weekly highs with a short-covering rally, but I’m still seeing opportunity for the sellers to hold them off, so instead of buying as we go higher, I’m going to wait for the sellers to get caught chasing it lower and buy into their stops with a failure set-up.
E-Mini S&P Back Into It’s Range…
E-Mini S&P is rallying higher after the sellers successfully defended the lows this afternoon, which means I’m looking for my shot to buy the next pullback, and I have my eyes on a key support level just below the 3290 area.
Watch the Trend-Line on Nasdaq…
Nasdaq is bullish with buyers targeting the 9100 round number back at all-time-highs, so I’m looking for a chance to buy a pullback, and I have my eyes on a key trend-line that almost everyone should easily see.
Gold is Three Legs Up – Now What?
Gold is bullish and trading at the high of a channel, which tells me to look for buy setups at the lows, but look closely and you can see we’re now 3-legs higher, telling me to anticipate a range, and seller-failure patterns to buy below it.
