Look for These Trades on “Reaction” Thursday

What’s the best way to trade the day after FOMC?

The key is patience, because the big moves we saw today will likely either reverse or turn sideways going into Thursday morning, giving us a clear plan of attack…

Remember, professional traders don’t trade these big news events, we trade the “reaction” the following day – that’s where the easy entries are…

The Eminis pushed lower today, and I’d love to trade the crown reversal pattern off today’s low. 

Crude Oil was a wild one, but the bulls finished with control, so I’ll be looking to buy long using seller failure patterns.  And let’s not forget…

Gold is bearish, but closed above a key support level today, so I’ll be looking for opportunities to trade the snap back to retest the high. 

E-Mini Keys to Success:

• Strong move down to complete major measured-move.  Expect range or reversal tomorrow.
• Bears Want to get short on the deep pullback
• Bulls Want to get long with a reversal

Best Setups for Tomorrow: 

• [UP] – Nested Failure to get short (or) 123-Reversal to get long
• [DOWN] – 123-breakout to get short (or) crown reversal to get long
• [SIDEWAYS] – sit on hands, sell resistance levels above the range

Crude Oil Keys to Success:

• Wild session whipping back and forth around the range.  Buyers got a strong move higher and will be looking to retest those highs.
• Bulls Want to buy this pullback for a retest of the high (or) buy below the range
• Bears Want to finish rotation back to today’s low

Best Setups for Tomorrow:

• [UP] – seller failure or 123-breakout to get long
• [DOWN] – nested failure to get long (or) 2-try trap to get short
• [SIDEWAYS] – sit on hands, wait for breakout to buy low, sell high

Gold Keys to Success:

• Strong move below the range, but closed inside the pendulum swing
• Bulls Want to complete the pendulum swing back to the highs
• Bears Want to hold this move and continue lower.

Best Setups for Tomorrow:

• [UP] – 2-try trap to buy, nested failure to buy, 123-Reversal to buy
• [DOWN] – nested failure to buy (or) 123-breakout to sell
• [SIDEWAYS] – buy below the range with nested failures