Are the Buyers Finally Beat? Friday’s Trade Plan

Another day, another major reversal!

The buyers had everything under control this morning until the rug got pulled out from underneath them this afternoon, sending everything back to the weekly lows…

Now we’re heading into Friday morning with bearish momentum, sideways ranges, and a handful of really exciting trades to look forward to tomorrow morning…

E-Mini S&P (ES):

E-Mini Keys to Success:

• As expected, buyers entered the market on the pullback early this morning and successfully retested the major highs before news spooked the markets and price tumbled with a 123-Reversal into bearish trading-range.
• Sellers will be looking to get short up above the range highs, or trading another leg lower with a bear breakout.
• Buyers need to stay patient for a trend reversal going back to today’s highs.

Best Trades for Tomorrow: 

• [UP] – buyer failure to sell (or) 123-Reversal to buy
• [DOWN] – 123-breakout to sell (or) nested failure to buy
• [SIDEWAYS] – sit on hands, wait to sell above range high with failures

E-Mini Nasdaq (NQ):

Nasdaq Keys to Success:

• Buyers were successful at retesting the overnight highs, but news from the White House sent prices running lower back into the range from earlier in the week.
• Sellers want to get short up above the range high, or trade the bear breakout going lower.
• Buyers don’t have any momentum so they need to wait for a 123-Reversal.

Best Trades for Tomorrow:

• [UP] – buyer failure to sell (or) 123-Reversal to buy
• [DOWN] – 123-breakout to sell (or) nested failure to buy
• [SIDEWAYS] – stay patient, sell above the range with buyer failures

Gold Futures (GC):

Gold Keys to Success:

• Bears took control with a 123-breakout of the overnight range and price chopped it’s way four legs lower into a small trading-range.
• Sellers would love to get short up around the resistance trend-line above the range, or run price lower with a bear breakout.
• Buyers have a tough job.  They need to reverse direction and find entries with traps to avoid buying into the range highs.

Best Trades for Tomorrow:

• [UP] – buyer failure with trap to sell (or) 2-try trap to buy
• [DOWN] – 123-breakout to sell (or) nested failure to buy
• [SIDEWAYS] – Wait to sell with buyer failures above the range.