5 Ways to Short this Bounce on Wednesday

Are you ready for Wednesday?

Sellers took control of momentum today, giving us plenty of reasons to focus on the sell side for another leg lower on Wednesday…

I’d love to short the Emini, but a strong bounce off today’s low tells me the buyers might not make it easy on me…

The Nasdaq looks great for a pendulum-swing going lower, but I’ll need to avoid selling into rising support…

And Gold looks great for a short on the next bounce, but I’m waiting for a test of two resistance levels overhead…  I’m excited for Wednesday, are you?

E-Mini S&P (ES):

E-Mini Keys to Success:

• Trending Market = Continuations, Reversals & new Ranges
• Sellers took control early in the session, took a break inside a range, then took price lower to complete a measured-move before bouncing hard off the lows.
• Sellers will be looking for another retest of today’s low, while buyers will be looking for a full reversal back up to all-time highs.

Top 3 Trades for Tomorrow: 

• UP – buy the 2-try trap (or) sell the 2try reversal
• DOWN – sell the buyer failure (or) buy the bear trap

E-Mini Nasdaq (NQ):

Nasdaq Keys to Success:

• Range Market = Failures, Rotation & Breakouts
• Bears have control into a trading-range, which has just completed a pendulum-swing rotation up off the lows.
• Sellers will be looking for shorts off the high of the channel, while buyers need to wait for a change in momentum going higher.

Top 3 Trades for Tomorrow: 

• UP – buy the 123-Reversal (or) Sell the 2try Reversal
• DOWN – sell the buyer failure (or) buy the 2try Reversal off the lows
• SIDEWAYS – Sit on hands to avoid the range middle.  Sell resistance levels overhead.

Gold Futures (GC):

Gold Keys to Success:

• Range Market = Failures, Rotation & Breakouts
• Sellers have control and trying to complete a pendulum-swing rotation off the high of the range from yesterday.
• Sellers will be looking for shorts off resistance above the range, or breakouts going lower.
• Buyers have a tough job ahead of them because they need to shift momentum for the bulls and find an entry before we retest the highs.

Top 3 Trades for Tomorrow: 

• UP – sell the buyer failure (or) buy the 123-Reversal
• DOWN – sell the 2-Try breakout (or) buy the 2try Failure
• SIDEWAYS – avoid the middle of the range, wait to buy low, sell high.