Time for a Short Squeeze? 3 Ways to Trade It.

Are You Seeing this Potential Short Squeeze?

You’re right — everything is bearish right now, but we’re sitting at major lows with ranges (magnets) just above us.  I can’t think of any better opportunity for the buyers to grab this…

And you know me – I’m always prepared for both directions, so I have some short setups off the highs and bear breakouts on my radar as well…

Friday is only a couple hours away – are you seeing these trades?

E-Mini S&P (ES):

E-Mini Keys to Success:

• It was another wild session on the Emini with both buyers and sellers taking turns controlling the markets momentum.
• Sellers finished the day with control into a trading-range and bears are trying to break new lows for another leg lower.
• Buyers will be looking to buy reversals off these lows, and trade breakouts going higher in the opposite direction.
• Sellers can trade the breakout going lower, but they need to see PROOF before they do.

Best Trades for Tomorrow: 

• UP – buy the 123-Reversal (or) sell the buyer failure
• DOWN – sell the 123-breakout (or) buy the seller failure

E-Mini Nasdaq (NQ):

Nasdaq Keys to Success:

• Bears have control into a trading-range this afternoon.
• Sellers will be looking for shorts at resistance levels above the range, along with breakouts running lower
• Buyers will be looking for longs at support levels below the range, along with pendulum-swing reversals shooting back higher.

Best Trades for Tomorrow: 

• UP – buy the 123-Reversal (or) sell the buyer failure
• DOWN – sell the 123-breakout (or) buy the seller failure

Gold Futures (GC):

Gold Keys to Success:

• Gold is rotating back and forth inside a large trading-range today.
• Buyers will be looking long at support levels below the range, along with bull breakouts going higher.
• Sellers will be looking for shorts off resistance levels above the range, along with bear breakouts going lower.

Best Trades for Tomorrow: 

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