This Trade Surprised Me – You Too?

We don’t see days like today very often – markets looked confused from start to finish!

But not to worry – because by the time the markets closed, we had all the information we needed to formulate a reliable trading plan for tomorrow…

Emini ES & Gold are pretty straightforward, but the setups I’m watching on the Nasdaq really surprised me. 

E-Mini S&P (ES):

E-Mini Keys to Success:

• Bulls took control early in the session but struggled to keep price pushing higher, finishing the session with a range and some wild swings back and forth.
• Buyers will be looking for rotation back to the highs of this range.
• Sellers need to hold this pullback and take control with a 123-Reversal.

Best Trades for Tomorrow: 

• [UP] – nested failure (or) 123-breakout to buy
• [DOWN] – nested failure to buy (or) 123-Reversal to sell

E-Mini Nasdaq (NQ):

Nasdaq Keys to Success:

• Buyers struggled to hold the pre-market rally and sold-off into the close this afternoon, but we’re sitting on the measured-move off the high which suggests we may be headed higher back into the range overhead.
• Bulls would like to trap sellers on the next pullback for a short-covering rally back to the highs.
• Sellers will be looking for another leg lower to finish the retest of yesterday’s low.

Best Trades for Tomorrow:

• [UP] – seller failure to buy (or) 2-legged pullback to sell
• [DOWN] – 2-try trap to sell (or) crown reversal to buy off major lows
• [SIDEWAYS] – wait for the range, then sell above the highs with failures.

Gold Futures (GC):

Gold Keys to Success:

• After spending the early morning chopping sideways inside yesterday’s range, sellers failed to retest the lows and buyers took it higher with a very sluggish 123-Reversal.
• Buyers will be looking for buying opportunities on the next pullback
• Sellers don’t have any momentum, so they need to run this lower then sell the bounces.

Best Trades for Tomorrow:

• [UP] – 2-try trap (or) 123-Reversal to buy
• [DOWN] – seller failure to buy (or) 123-Reversal to sell