Don’t Get Short Until You Watch! (Thursday’s Plan)

That escalated quickly, wow!

Sellers took control on the Eminis today with another strong leg lower, giving us (4) four easy trade setups to watch for tomorrow…

Gold is bearish too, and I have my eyes on (2) key resistance levels to look for the next round of selling…  Are you seeing these trades too?

E-Mini S&P (ES):

E-Mini Keys to Success:

• Trending Market = Continuations, Reversals & new Ranges
• Big move today reminds us to look for a range tomorrow.
• The session began with buyers and sellers battling for control, but sellers finally took control and finished with a strong run lower.
• With such a strong move lower this afternoon, we can assume sellers will be anxious to sell into any decent pullback into resistance levels overhead.
• Buyers need to stay patient until they see a 123-Reversal or signs of exhaustion off these lows.

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
• SIDEWAYS – wait for the new range, then sell at resistance levels above it.

E-Mini Nasdaq (NQ):

Nasdaq Keys to Success:

• Trending Market = Continuations, Reversals & new Ranges
• Big move today means likely a narrow range tomorrow.
• We started with a choppy range today, but sellers finally took control with a strong leg lower to finish the session.
• Sellers have control, and they’ll be looking for selling opportunities at resistance levels on the next pullback.
• Buyers need to stay patient and wait for exhaustion off these lows, or a change in momentum with a 123-Reversal.

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
• SIDEWAYS – sit on hands until you see a new range, then sell at resistance levels above it.

Gold Futures (GC):

Gold Keys to Success:

• Range Market = Failures, Rotation & Breakouts
• Trending Market = Continuations, Reversals & new Ranges
• Gold continues to rotate back and forth inside a range and expanding triangle.
• Important to watch this “rotation” carefully to get clues ahead of a breakout.
• Sellers will be looking for shorts off resistance levels above the range, and…
• Buyers will be looking for longs off support levels below the range.

Top 3 Trades for Tomorrow: 

• UP – Sell the buyer failure (or) buy the 123-breakout
• DOWN – Buy the seller failure (or) sell the 123-breakout
• SIDEWAYS – avoid the middle of the range, wait to buy low and sell high.