5 Ways to Profit from “Traps” on Friday

One more day left, let’s make it count!

Everything’s bearish going into Friday’s trading session…

Emini is bearish, and I’m looking for a bull-trap short off the high of a new “hidden” bear channel…

Nasdaq is bearish, and the size of today’s move tells me to expect some nice “range trades” on Friday…

Crude Oil is bearish, and there’s a perfect spot to “trap in the bulls” up around the low of today’s range…

Lots of easy ways to use “traps” on Friday – don’t miss these…

E-Mini S&P (ES):

E-Mini Keys to Success:

Rollover Reminder – we’re likely going to roll forward to the 03-22 contract on Friday.

Bears took control into a range today and finished the session with a strong run lower to complete the measured-move off today’s high.

Sellers have all the momentum right now, but since we just finished the measured-move into the closing bell, it’s best to wait and see how we open going into Asia.

Sellers would love to short the high of this larger bear channel if they can get a bounce.

If price goes sideways, look for shorts off resistance levels above that new range.

And if price keeps pushing lower, it’s time to find a new (steeper) bear channel and be ready to sell the “first test” off the highs tomorrow morning.

Buyers don’t have much to work with right now.  Bears have all the momentum and there’s a big resistance trend-line coming down off today’s highs.  We need to see a strong 123-Reversal before we can think about buying.

E-Mini Nasdaq (NQ):

Nasdaq Keys to Success:

Rollover Reminder – we’re likely going to roll forward to the 03-22 contract on Friday.

Nasdaq is bearish after going four legs lower and closing right on it’s lows this afternoon.

Sellers have all the momentum right now, and the lack of any deep pullback off these lows tells me that sellers would LOVE to short into the next bounce off these lows.

We may also turn sideways tomorrow – anytime we see a big move like this, we know the following day is likely going to turn sideways into a range.  If so, we can start looking for shorts off resistance levels up above the range.

If we keep pushing lower, then we know it’s time to draw the channel a little steeper and be ready to short the first test off the high.

Buyers need to stay patient at this point, but a strong 123-Reversal pattern off these lows would be enough to give us reason to get long on pullbacks going back up into that range from earlier today.

Crude Oil Futures (CL):

Crude Oil Keys to Success:

Crude Oil reversed off yesterday’s high, ran lower into a range, then broke out lower to complete a full pendulum-swing from yesterday’s trading-range.

Sellers have all the momentum, and the strength of this recent move lower tells us sellers will be looking to short the next pullback into the low of today’s range and the high of this new bear channel.

If price goes sideways, sellers can look for shorts off resistance levels overhead.  And if we keep pushing lower, it’s time to find a steeper bear channel and look for entry off the high.