Trading with Traps on Non-Farm Friday

We’re heading into Non-Farm Payrolls tomorrow morning, one of the biggest news events of the month, which means there should be plenty of trading opportunities to finish the week…

Looking at the charts, we have two important trading-ranges to pay attention to.  There’s a major range acting like a price-magnet, and a minor range to help us time our entries with traps.  Are you ready for Friday? 

E-Mini Keys to Success:

• Sellers got short on all the pops today, eventually sending the market lower into a range with an overshoot at the low.
• Bulls Want to use the pendulum swing going back to the weekend GAP.
• Bears Want to retest today’s low and test the 3700 round number.

Best Setups for Tomorrow: 

• [UP] – nested failure to sell (or) 123-breakout to buy
• [DOWN] – 123-breakout to sell (or) crown reversal to buy
• [SIDEWAYS] – sit on hands, wait to buy low and sell high.

Nasdaq Keys to Success:

• Day begins in a range; sellers keep shorting the pops.  Price eventually pushes lower into another range with an overshoot at the lows.
• Bulls Want to complete the pendulum swing back into the original range overhead.
• Bears Want to retest the low and work towards the 12000 round number.

Best Setups for Tomorrow:

• [UP] – nested failure to sell (or) 123-breakout to buy
• [DOWN] – 123-breakout to sell (or) crown reversal to buy
• [SIDEWAYS] – sit on hands, wait to buy low and sell high.

Gold Keys to Success:

• Bears kept shorting the pops above yesterday’s trading-range, eventually pushing price lower to complete the pendulum swing objective.
• Bulls Want to take price back into the range above.
• Bears Want to finish the measured-move and try going lower.

Best Setups for Tomorrow:

• [UP] – nested failure to sell (or) 123-Reversal to buy
• [DOWN] – 123-breakout to sell (or) crown reversal to buy
• [SIDEWAYS] – sit on hands, buy low, sell high, focus on failures