How Do I Trade Today’s Breakout? Buy It? Sell It?

We’re back in the action again, and we have a busy week ahead of us…

With the end of the month, big news on the schedule, and a handful of rather convincing breakouts on the charts today, tomorrow should be an excellent day in the markets…

But here’s the question – what’s the best way to trade these breakouts?

The Emini and Nasdaq both got bull breakouts, while Gold got a bear breakout.  Do we buy these?  Sell them?  What’s the best entry pattern? 

Not to worry, I’m going to cover all my favorite breakout setups in tonight’s video…

E-Mini S&P (ES):

E-Mini Keys to Success:

• Friday’s bull run turned sideways into a range on Monday
• Buyers retested Friday’s high, now we look for a breakout higher or failure and move back down into the range below.
• Bulls want to breakout to new all-time highs
• Bears want to short back into the range price-magnet below

Best Trades for Tomorrow: 

• [UP] – 123-breakout to buy (or) nested failure to sell
• [DOWN] – 123-Reversal to sell
• [SIDEWAYS] – sit on hands, use failures to sell above the range

E-Mini Nasdaq (NQ):

Nasdaq Keys to Success:

• Bulls in control, testing the ‘pendulum swing’ resistance above multiple ranges (price-magnet) waiting to drag price lower.
• Bulls want to breakout higher up to 13,300
• Bears want to get short going back into the range below.

Best Trades for Tomorrow:

• [UP] – 123-breakout to buy (or) nested failure to sell)
• [DOWN] – 123-Reversal to sell
• [SIDEWAYS] – wait for the range, sell above the high with failures

Gold Futures (GC):

Gold Keys to Success:

• Gold rolled forward to the 06-21 contract this week.
• Bears finally break free from last week’s nasty trading-range
• Weekend GAP and range acting as price-magnets overhead.
• Strong bear breakout suggests another leg in the same direction
• Bulls want to reverse momentum and go back into the range
• Bears want to get short off overhead resistance

Best Trades for Tomorrow:

• [UP] – buyer failure to sell (or) 123-Reversal to buy
• [DOWN] – 2-try trap (or) 123-breakout to sell
• [SIDEWAYS] – sit on hands, wait to short above range high