Should I Trade It, Or Fade It? (Friday’s Plan)

Are you ready for Friday’s trading session?

With markets exploding higher in the wake of yesterday’s stimulus approval, it’s easy to think this afternoon’s pullback is the perfect time to get long, right?

I thought so too – but after looking closely at the charts, it’s easy to see that buyers have some big challenges ahead of them on Friday…

I keep asking myself – should I trade this pullback?  Or should I fade (sell) it?  I’ll answer that question, and review my favorite trades in tonight’s video…

E-Mini S&P (ES):

E-Mini Keys to Success:

• Buyers complete their measured-move running higher, failed to test the all-time highs and finished with a deep pullback off the highs.
• Bulls Want to finish the job and get back to all-time highs
• Bears Want to reverse trend back to the ranges below.

Best Setups for Tomorrow: 

• [UP] – buyer failure to sell (or) nested failure to buy
• [DOWN] – 2-try trap to sell (or) 123-Reversal to buy
• [SIDEWAYS] – sit on hands, wait to fade the breakouts

E-Mini Nasdaq (NQ):

Nasdaq Keys to Success:

• Bulls trying to breakout of today’s range but doesn’t look very convincing.  Buyers need  
• Bulls want to keep momentum going up to next major highs at 13,350
• Bears want to reverse direction back into the ranges below

Best Setups for Tomorrow:

• [UP] – 123-breakout to buy (or) buyer failure to sell
• [DOWN] – 123-Reversal to sell (or) nested failure to buy
• [SIDEWAYS] – sit on hands, wait to buy low, sell high with failures.

Gold Futures (GC):

Gold Keys to Success:

• Market spiked higher overnight but fell back lower and finished with a range.
• Bulls want to reverse the trend back to the highs
• Bears want to sell the pops above the range, or the breakout lower

Best Setups for Tomorrow:

• [UP] – buyer failure to sell (or) 123-breakout to buy
• [DOWN] – 123-breakout to sell (or) nested failure to buy
• [SIDEWAYS] – avoid the middle, buy low sell high with failure setups