Can I Short This on Tuesday? Here’s My Plan.

We’re back to our desks for the first week of May and there are tons of great opportunities setting-up this week…

The Eminis turned bearish this afternoon, and with price sitting at today’s lows, I’ll be looking to sell the bounces at key resistance levels tomorrow morning…

And how about Gold?  The “yellow metal” took off like a rocket this morning, but now the bulls find themselves in a tough spot – am I crazy to think about shorting this thing on Tuesday?   Before you call me crazy, watch this video…

E-Mini S&P (ES):

E-Mini Keys to Success:

• Market opened with a bull spike higher overnight, but after trading sideways this morning the buyers lost control with a 123-Reversal for the bears going back into the range from last week.  Will we get a ‘pendulum swing’ in the opposite direction?
• Bears would love to sell the high of this channel, or sell bull-traps if price tumbles lower.
• Buyers have a tough job ahead of them, they need to turn momentum around because it doesn’t look good.

Best Trades for Tomorrow: 

• [UP] – buyer failure to sell (or) 123-Reversal to buy
• [DOWN] – 2-try trap (or) 123-breakout to sell
• [SIDEWAYS] – sit on hands, wait to sell at resistance above the range.

E-Mini Nasdaq (NQ):

Nasdaq Keys to Success:

• The bulls started off strong, but price collapsed off the highs shortly before lunch and finished the day going sideways with a bearish trading-range.
• Sellers will be looking for sell setups at resistance levels above the range, or selling breakouts going lower tomorrow morning.
• Buyers have very little momentum to work with.  They need a 123-Reversal before they can start considering getting into this market.

Best Trades for Tomorrow:

• [UP] – buyer failure to sell (or) 123-Reversal to buy
• [DOWN] – 2-try trap (or) 123-breakout to sell
• [SIDEWAYS] – stay patient for sell setups above the range highs.

Gold Futures (GC):

Gold Keys to Success:

• Bulls had control the entire day, and finished just slightly off the highs with a trading-range.
• Buyers would love to buy the low of this channel, but they’ll need to watch momentum closely because sellers will be trying to sneak in and take it back to last week’s trading-range below.

Best Trades for Tomorrow:

• [UP] – nested failure to sell (or) 123-breakout to buy
• [DOWN] – nested failure to buy (or) 2-try trap to sell
• [SIDEWAYS] – sit on hands, wait to buy low, sell high with failures.