Ready for ‘Reaction’ Thursday? (FOMC Strategy)

We survived the FOMC Announcement this afternoon, and now we shift our focus to one of the most exciting days of the month, ‘Reaction Thursday’…

That’s right – the day after FOMC is usually a day filled with plenty of price-action setups, so I want to make sure you know where to find the best entries and targets to capitalize on the action…

E-Mini S&P (ES):

E-Mini Keys to Success:

• Range Market = Failures, Rotation & Breakouts
• Bullish into a range and possibly spike and channel.
• Buyers have control, and will be looking for buying opportunities at support levels below the range, along with breakouts on strength above the range tomorrow morning.
• Sellers need to be patient, but will be looking for selling opportunities if price begins to accelerate as it rotates off the highs.

Top 3 Trades for Tomorrow: 

• UP – buy the 123-breakout (or) sell the 2try Reversal
• DOWN – buy the seller failure (or) sell the 123-reversal
• SIDEWAYS – sit on hands and avoid the middle of the range.

E-Mini Nasdaq (NQ):

Nasdaq Keys to Success:

• Range Market = Failures, Rotation & Breakouts
• Bullish into a range, but unlike the Emini, lower-highs and a failed pendulum-swing rotation signal that sellers are stronger than we might first assume.
• Buyers have control of momentum, and they’ll be looking for buying opportunities at support levels below the range, as well as breakouts to new highs.
• Sellers do appear to have their hooks in this, but they need to wait for a strong move lower, or a bounce reversal off the highs to get short with confidence.

Top 3 Trades for Tomorrow: 

• UP – buy the 2-Try breakout (or) sell the reversal off highs
• DOWN – buy the seller failure (or) sell the 123-Reversal
• SIDEWAYS – avoid the middle and wait for a breakout

Gold Futures (GC):

Gold Keys to Success:

• Range Market = Failures, Rotation & Breakouts
• A failed pendulum-swing combined with strong spike higher gives buyers the edge for a possible breakout of this week’s range tomorrow morning, but with this triangle high holding well, it would be wise to keep our eyes on short

Top 3 Trades for Tomorrow: 

• UP – buy the 123-breakout (or) sell the buyer failure
• DOWN – buy the seller failure (or) sell the buyer failure
• SIDEWAYS – wait for new range to form, then buy low, sell high.