How Do I Trade OPEX Friday? Here’s My Plan.

We’re headed into OPEX Friday tomorrow, and with such strong runs today, I’ll be looking for either sideways ranges or deep pullbacks to trade tomorrow morning…

I’d love to get a deep pullback off today’s highs so I can look for ways to get long into the stops of the sellers, but I wouldn’t complain if the markets trade sideways either because the strategy is so simple.  Here’s my plan either way…

E-Mini S&P (ES):

E-Mini Keys to Success:

• Bullish into a spike and channel tells us to look for entries near the ‘base’ of the channel.
• Strong move higher today also suggest range-bound market on Friday.
• Bulls want to buy the pullback near the base of the channel for a retest of the high
• Bears want to reverse the trend back into the range from yesterday.

Best Trades for Tomorrow: 

• [UP] – 2-try trap to buy (or) buyer failure to sell
• [DOWN] – seller failure to buy (or) 123-Reversal to sell
• [SIDEWAYS] – buy below the new range with seller failure patterns.

E-Mini Nasdaq (NQ):

Nasdaq Keys to Success:

• Bullish run higher into a spike and channel. 
• Strength of this run suggests a range or deep pullback tomorrow morning
• Bulls want to buy the pullback to the base of the channel
• Bears want to reverse the trend back to yesterday’s lows.

Best Trades for Tomorrow:

• [UP] – 123-breakout to buy (or) buyer failure to sell
• [DOWN] – seller failure to buy (or) 123-Reversal to sell
• [SIDEWAYS] – wait for bear breakout lower and buy into seller failure pattern.

Gold Futures (GC):

Gold Keys to Success:

• Strong run higher for the bulls suggests tomorrow will either be a sideways range or a deep pullback to let buyers buy lower.
• Bulls want to buy the deep pullback at support levels below.
• Bears want to reverse the trend and go back to the range from yesterday.

Best Trades for Tomorrow:

• [UP] – 2-try trap to buy (or) buyer failure to sell
• [DOWN] – seller failure to buy (or) 123-Reversal to sell
• [SIDEWAYS] – sit on hands, wait to buy below the range with seller failures.