Don’t Miss this Wedge Breakout on Thursday

Where Do We Go from Here?

Everything’s bullish after completing the Holiday Snap Back…

Gold and Nasdaq are both range-bound and looking for breakouts to retest recent highs, but the trade I’m most excited about is this wedge breakout on the Eminis…

E-Mini S&P (ES):

E-Mini Keys to Success:

• Trending Market = Continuations, Reversals, New Ranges
• Big Moves today, anticipate a narrow range tomorrow
• Bullish into a spike and channel, telling us to look for buying opportunities down near the “base” of the channel, or buying breakouts to new highs.
• Sellers need to wait for momentum to turn, either with exhaustion at these highs, or a 123-Reversal going lower.

Top 3 Trades for Tomorrow: 

• UP – buy the 2-Try breakout (or) sell the 2-try failure reversal
• DOWN – buy the seller failure (or) sell the 123-Reversal
• SIDEWAYS – wait for new range to form, then buy support levels below the range.

E-Mini Nasdaq (NQ):

Nasdaq Keys to Success:

• Range Market =Failures, Rotation & Breakouts
• Bulls completed their pendulum-swing (snap back) early in the day, followed by a profit-taking pullback which ended in a range for the day.
• Bulls have an open-loop at the highs, and will be looking to buy breakouts going higher, or failures on the next pullback.
• Sellers have a great opportunity to reverse this if they can get some strength going lower, but they should stay patient until then.

Top 3 Trades for Tomorrow: 

• UP – buy the 123-breakout (or) sell the 2-try failure reversal
• DOWN – sell the 2-Try breakout (or) buy the seller failure
• SIDEWAYS – sit on hands and wait for a breakout

Gold Futures (GC):

Gold Keys to Success:

• Range Market =Failures, Rotation & Breakouts
• Tight range today, anticipate big move tomorrow
• Bulls have control of momentum into a trading-range, telling buyers to buy bull breakouts and pullbacks at support levels below the range.
• Sellers have plenty of opportunity, either selling a reversal off the major highs, or selling a breakout going back to close the loop down at 1790.2

Top 3 Trades for Tomorrow: 

• UP – buy the bull breakout (or) sell the 2-try failure
• DOWN – sell the breakout (or) buy the seller failure
• SIDEWAYS – avoid the range middle, wait for a breakout