Ready for OPEX? Don’t Get Long Until You Watch!

Oh boy, OPEX Friday is right around the corner!

We have a lot to look forward to tomorrow morning.  We have Fed Speakers talking inflation, two big news reports, and a huge move today which will have everyone trying to pick their entry spots tomorrow morning…

The Eminis are trending which means I’m looking for pullbacks and reversals, and Gold is still range-bound so I’m focus on failures around the edges…

E-Mini S&P (ES):

E-Mini Keys to Success:

• Buyers got a short-squeeze running higher today, almost all the way back to where the week began on Monday.   
• Buyers are in control of momentum, and they’ll be looking for ways to buy below this range with failure patterns.
• Sellers don’t have any control, so they would be wise to wait for a 123-Reversal and short the first pullback.

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] – sit on hands, wait to buy low with seller failures

E-Mini Nasdaq (NQ):

Nasdaq Keys to Success:

• Strong run higher for the bulls, expecting a range tomorrow, will be looking to buy the dips early on Friday.
• Buyers have control and they’ll be looking for ways to get long off support levels, such as the bull channel below us.
• Sellers don’t have any momentum so they need to wait for a 123-Reversal before they can get short with confidence.

Best Trades for Tomorrow:

• [UP] – 2-try trap to buy & 123-breakout to buy
• [DOWN] – seller failure to buy (or) 123-Reversal to sell
• [SIDEWAYS] – wait for the next range, buy below range lows with seller failures.

Gold Futures (GC):

Gold Keys to Success:

• Day began in a range, so with buyers trying to push higher, I’ll be looking to short back into the range (magnet) below us.
• The bulls have momentum with a strong push higher, so I’d like to wait for either a retest of those highs, or a trap to get short before we get back into the range.

Best Trades for Tomorrow:

• [UP] – buyer failure & bull trap to sell (or) 123-breakout to buy
• [DOWN] – 2-try trap & 123-Reversal to sell (or) seller failure to buy below lows.
• [SIDEWAYS] – wait for the range, then sell high with failures.