Am I Too Late to Get Short? (Friday’s Plan)

End of week, end of month tomorrow morning!

That’s usually a recipe for some great volatility;  I certainly hope so, because this afternoon’s Emini bloodbath tells us there’s likely even more big moves coming tomorrow morning…

And don’t forget about Gold!  Gold was nothing but bullish today, but with a range below us, and major resistance overhead,  I’ll be looking for bullish exhaustion and some reversal opportunities to finish the week…

I always love trading “end of month”, don’t miss these trades on Friday…

E-Mini S&P (ES):

E-Mini Keys to Success:

• Trending Market = Continuations, Reversals & new Ranges
• Buyers took control early in today’s session, but sellers eventually took control on strength going back into the range magnet to finish the week.
• Sellers have all the momentum, and will be looking for selling opportunities at resistance levels above, along with traps going lower.
• Buyers have to stay patient for a reversal because the range below, combined with all this short-term momentum says we’re likely to see another leg lower tomorrow morning

Top 3 Trades for Tomorrow: 

• UP – sell the buyer failure (or) buy the 123-Reversal
• DOWN – sell the 2-try trap & 123-Reversal back to range lows.
• SIDEWAYS – sit on hands inside the range, wait to sell high above the range.

E-Mini Nasdaq (NQ):

Nasdaq Keys to Success:

• Trending Market = Continuations, Reversals & new Ranges
• The day began very bullish, but afternoon headlines from Amazon quickly took the confidence out of traders and price collapsed running back down into the range below.
• Sellers have a lot of strength behind them, suggesting that any pullback to resistance levels would be seen as a selling opportunity for another leg lower.
• Buyers have no options right now and need to wait for momentum to turn in their favor.

Top 3 Trades for Tomorrow: 

• UP – sell the buyer failure (or) buy the 123-Reversal
• DOWN – sell the 2-try trap (or) sell the 123-breakout
• SIDEWAYS – wait for the new range, then sell resistance levels above it.

Gold Futures (GC):

Gold Keys to Success:

• Range Market = Failures, Rotation & Breakouts
• Buyers have control, but a failed retest of major highs, combined with a range below us tells us these buyers may have run out of ammo and ready for a pullback.
• Sellers will be looking for the 2-Try Rule to time entries short, or wait for a 123-Reversal going lower to get short on the first pullback
• Buyers need to be careful because major resistance at 39.0 is right above them.  It would be better to wait for a correction and then trade the snap back to the high.

Top 3 Trades for Tomorrow: 

• UP – sell the 2try reversal (or) buy the 123-breakout
• DOWN – sell the 2-try trap & sell the 123-Reversal