Don’t Get Long Until You Watch this!

Wild markets today, is it time to get long?

Not to fast – Yes, the Emini and Nasdaq are both bouncing hard off today’s lows, but we have (2) big reasons to be careful buying the next pullback…

Gold, on the other hand, is certainly bullish, but if you didn’t get in on the last trap entry, you’ll want to wait for these (2) setups to qualify the next entry…

E-Mini S&P (ES):

E-Mini Keys to Success:

• Trending Market = Continuations, Reversals & new Ranges
• Big move down today says anticipate a range or reversal tomorrow
• Sellers have control with a strong move lower into a trading-range today.
• Sellers will be looking for selling opportunities off the high of this spike and channel, using the trading-range as a price-magnet below.
• Buyers have an opportunity to take control if they can hold the next pullback, but they need to be careful getting too aggressive until we see the momentum change hands.

Top 3 Trades for Tomorrow: 

• UP – sell the buyer failure (or) buy the 123-Reversal
• DOWN – sell the 2-try trap (or) buy the bounce reversal off lows

E-Mini Nasdaq (NQ):

Nasdaq Keys to Success:

• Range Market = Failures, Rotation & Breakouts
• Strong bearish move down into a range today.
• Sellers will be looking for selling opportunities at resistance levels above the range.
• Buyers need to hold the next pullback in order to take control of this market.

Top 3 Trades for Tomorrow: 

• UP – sell the buyer failure (or) buy the 2-try trap
• DOWN – sell the 2-try trap (or) buy the bounce reversal
• SIDEWAYS – sit on hands and wait for new range, then buy low sell high

Gold Futures (GC):

Gold Keys to Success:

• Trending Market = Continuations, Reversals & new Ranges
• Wild ride today often results in a narrow range tomorrow.
• Buyers have control of momentum with an open-loop move, so they’ll be looking for ways to get in before they retest the highs, then look for breakouts going back into the range magnet waiting above.
• Sellers need to stay patient for momentum to turn in their favor again.

Top 3 Trades for Tomorrow: 

• UP – buy the 2-Try breakout (or) sell the buyer failure
• DOWN – sell the 123-Reversal (or) buy the bounce reversal off the lows
• SIDEWAYS – sit on hands and wait to buy low, sell high of new range.