Hard to Resist this Trade on FOMC Day!

FOMC is tomorrow, are you ready?

Markets are bearish going into tomorrow’s “Fed Day”, and with big news in the afternoon, that means we need to find our entries early tomorrow morning…

Speaking of entries, with such a strong move lower today, there’s one specific entry setup that will be hard to resist tomorrow morning.  Let me show you…

E-Mini S&P (ES):

E-Mini Keys to Success:

• Trending Market = Continuations, Reversals & new Ranges
• Big move today means potential narrow range tomorrow.
• Bears took control with a strong run lower, telling us that sellers will be looking for opportunities to sell back down to retest today’s lows.
• Buyers need to stay patient for a 123-Reversal; they need to show us proof they can hold this pullback off the moving-average.

Top 3 Trades for Tomorrow: 

• UP – Buy the 2-try trap (or) sell the 2try Reversal
• DOWN – sell the buyer failure & 2-try trap (or) buy the bounce reversal
• SIDEWAYS – Wait for the new range, then buy low, sell high with failures

E-Mini Nasdaq (NQ):

Nasdaq Keys to Success:

• Trending Market = Continuations, Reversals & new Ranges
• Big moves today often mean narrow ranges tomorrow
• Today’s strong run lower gives all the momentum to the bears and gives them plenty of reasons to short this recent bounce for a target back down at the lows.
• Buyers have to stay patient for a change in momentum with a 123-Reversal, then they can buy pullbacks going back up to the highs.

Top 3 Trades for Tomorrow: 

• UP – buy the 123-Reversal (or) sell the 2try Reversal
• DOWN – sell the buyer failure & traps (or) buy the bounce reversal

Gold Futures (GC):

Gold Keys to Success:

• Range Market = Failures, Rotation & Breakouts
• Bears had control going into today’s new range, and after a nice bounce off the lows, sellers are getting short with the goal of completing a pendulum-swing rotation all the way down to 1789.1
• Buyers need to wait for the opportunity to either (a) buy support below the range, or (b) turn momentum with a 123-Reversal going higher.

Top 3 Trades for Tomorrow: 

• UP – sell the buyer failure (or) buy the 123-breakout
• DOWN – sell the 2-try trap (or) buy the bounce reversal
• SIDEWAYS – avoid the middle of the range, wait to buy low and sell high with failures.