Is this Reversal for Real? What if It’s a Trap?!

Welcome back to the party!

Gold, Emini and Nasdaq all pushed higher into the closing bell this afternoon with enough strength to suggest a bullish reversal may be in the making for Tuesday…

Knowing this – I’d love to buy some pullbacks, but we’re sitting right at the highs of today’s range, which isn’t a very easy place to get long…

So instead of jumping in long, I’m looking to “trap in the bears” so I can use their stops as fuel for the next leg higher – I’ll show you how in tonight’s video…

And you know me – I always have a backup plan.  I also see some easy shorts to take lower if these bulls are full of baloney… don’t miss these trades for tomorrow!

E-Mini S&P (ES):

E-Mini Keys to Success:

• Sellers took control into a trading-range today, but they failed to price moving lower and now the buyers have control trying to complete a pendulum-swing reversal in the opposite direction.
• Buyers have control, and with such a strong run going higher, we can assume they will be looking for pullback entries and another leg higher.
• Sellers would also love to sell off these resistance levels above the range, but this bullish momentum is too strong at this point.  They need to wait for signs of exhaustion (or trend change) before they get short.

Best Trades for Tomorrow: 

• UP – buy the breakout pullback (or) sell the buyer failure  
• DOWN – sell the 123-Reversal (or) buy the seller failure off range lows

E-Mini Nasdaq (NQ):

Nasdaq Keys to Success:

• Bears took control into a trading-range today, but now a failed rotation for the bears is giving the bulls an opportunity to run prices higher.
• Sellers still have control and will be looking for shorts off these resistance levels above the range, but this bullish momentum tells them to stay patient for the entry.
• Buyers have a great opportunity, but they don’t have the breakout yet. Best way to get long is to trap in sellers around channel lows, or wait for a breakout and buy the first pullback before we retest the highs.

Best Trades for Tomorrow: 

• UP – buy the 123-breakout (or) sell the buyer failure off resistance
• DOWN – sell the buyer failure (or) buy the seller failure off support lows.
• SIDEWAYS – avoid the middle of the range middle, wait to buy low, sell high.

Gold Futures (GC):

Gold Keys to Success:

• Today began with a narrow range, but a strong bull breakout now gives buyers the momentum edge and expect buyers to attempt another leg higher to complete a measured-move.
• Buyers will be looking to trap in sellers for entries going long off this channel.
• Sellers have to be patient for buyers to try twice and fail before they can get short because that strong move higher means there’s a good chance we get another leg higher.

Best Trades for Tomorrow: 

• UP – buy the seller failure into pullback (or) sell the buyer failure off highs
• DOWN – sell the 123-Reversal (or) buy the seller failure off major lows.
• SIDEWAYS – sit on hands and avoid the range.  Wait to buy low sell high with failures.