Are You Ready for this Short Squeeze?

What do you think for Friday?

Are we gonna rip higher with a short-squeeze back to all-time highs?

Or will sellers take this another leg lower to finish the week?!

I’m ready either way – because there are plenty of price-action setups no matter which direction this market heads tomorrow morning…

E-Mini S&P (ES):

E-Mini Keys to Success:

• Range Market = Failures, Rotation, Breakouts
• Bears took it lower overnight into a trading-range, but the buyers were able to catch a breakout with a strong run higher this afternoon which leaves the market looking a bit confused going into the close.
• Sellers had plenty of opportunity to get short going back into the range this afternoon but couldn’t finish the retest of the low, which suggests a retest of the recent high is in the works.
• Buyers will be looking for a short-covering rally back to all-time highs, while sellers are trying to break down and retest today’s low.

Top 3 Trades for Tomorrow: 

• UP – buy the bull breakout (or) sell the buyer failure
• DOWN – sell the breakout-pullback & sell the 2-try trap break down
• SIDEWAYS – wait for a new range, then buy low sell high

E-Mini Nasdaq (NQ):

Nasdaq Keys to Success:

• Range Market = Failures, Rotation, Breakouts
• Bearish into a trading-range with a strong bull breakout.  
• The range acts like a magnet, but the bull breakout says expect a retest of the high before price drops back into the range.
• Buyers will be looking for breakouts going higher, while sellers will be looking for shorts going back to the range below.

Top 3 Trades for Tomorrow: 

• UP – buy the bull breakout (or) sell the buyer failure
• DOWN – buy the seller failure (or) sell the breakout-pullback
• SIDEWAYS – sit on hands and trade the edges of the new range.

Gold Futures (GC):

Gold Keys to Success:

• Range Market = Failures, Rotation & Breakouts
• Bulls tried to push higher, but the range magnet was too much and price is now rotating lower in an attempt to complete the pendulum-swing
• Sellers will be looking for shorts down to the pendulum-swing, while buyers will be looking for reversals to get long.

Top 3 Trades for Tomorrow: 

• UP – sell the buyer failure (or) buy the 123-breakout
• DOWN – sell the breakout-pullback (or) buy the 2-try failure off the lows
• SIDEWAYS – avoid the middle of the range, wait for a breakout to buy low, sell high.