Trading Reversals & Breakouts on Non-Farm Payrolls

Are you ready for Non-Farm Payrolls?

I hope so!  Tomorrow is the last day of the summer season, and what better way to finish it off than with the biggest news of the month, Non-Farm Payrolls!

Looking at the charts tonight, you can tell there’s major news on the horizon because we have a bunch of sideways ranges acting like magnets…

I love ranges because the plan is so simple — Buy low, sell high, focus on failures and trade the rotation!  Keep these trades on your radar for tomorrow…

E-Mini S&P (ES):

E-Mini Keys to Success:

• Range Market = Failures, Rotation & Breakouts
• Buyers took control into a trading-range this morning.  Sellers tried a breakout going lower, but they failed after 2 tries and buyers have taken control for a run back to retest the highs.
• Buyers will be looking for ways to get long before we retest the highs, then looking for breakouts to complete the pendulum-swing target up overhead.
• Sellers don’t have any momentum right now, so they need to wait for a 123-Reversal or they need to wait for signs of exhaustion to sell off the highs.

Top 3 Trades for Tomorrow: 

• UP –  Buy the 2-try trap, Buy the 123-breakout, Sell the 2-try failure off highs.
• DOWN – buy the seller failure, Sell the 123-Reversal

E-Mini Nasdaq (NQ):

Nasdaq Keys to Success:

• Trending Market = Continuations, Reversals & new Ranges
• Sellers took it lower on strength, but after trying to keep price going lower twice, it appears they may be failing going back into the range above us.
• It’s also important to see that bear channel coming down overhead, which may result in a strong short lower.
• Buyers will be looking for long entries on strength going higher, or off the major lows below.
• Sellers have all the momentum and will be looking for shorts coming off the highs of this channel, along with selling breakouts going lower.

Top 3 Trades for Tomorrow: 

• UP – buy the 123-Reversal, Sell the buyer failure
• DOWN – buy the seller failure, Sell the 123-breakout going lower
• SIDEWAYS – sit on hands, wait for the new range, then buy low sell high with failures.

Gold Futures (GC):

Gold Keys to Success:

• Range Market = Failures, Rotation & Breakouts
• Sellers have control and trying to break free of the weekly trading-range.
• Sellers have momentum, but trying to sell into the range lows isn’t very attractive.  Sellers need to wait for a breakout and sell the follow-up leg.
• Buyers have more opportunities right now, but they need to wait for exhaustion at the support levels below the range, or wait for a strong reversal going higher.

Top 3 Trades for Tomorrow: 

• UP – buy the 123-Reversal, sell the buyer failure off resistance above the range.
• DOWN – buy the seller failure, Sell the 123-breakout