These (2) Trades Could Make Your Entire Month!
Welcome back to the action!
February starts tomorrow, and with such BIG moves on the charts today, we know there should be plenty of opportunity tomorrow…
The Emini and Nasdaq both made strong runs higher today, and the SIZE of this moves tells me there are (2) trades I can’t miss on Tuesday…
Crude Oil is bullish – but look closely and you’ll see this isn’t a great place to get long. I’d love to sell it short up here, but there’s ONE pattern I need to wait for…
Really excited for tomorrow – we have major news and some big ranges to work with. Just ONE of these trades could make your entire February!
E-Mini S&P (ES):
E-Mini Keys to Success:
Buyers have control with a strong “runaway” move higher today.
Anytime I see a move this large in one day, I know the following day will likely be a range, or require a deep pullback to attract more buyers at lower prices.
Buyers have all the momentum, and with such a strong run higher, we know buyers will be looking for pullback entries and a target back to the highs.
Sellers need to stay patient for now – they can wait for a retest of the high followed by a crown reversal short, or they can wait for a 123-Reversal and short the first channel test
E-Mini Nasdaq (NQ):
Nasdaq Keys to Success:
Just the Emini ES, the Nasdaq went on a strong run higher today, finishing strong into the close.
2 things to remember – first, anytime we see such a strong move higher, we know that buyers will be looking for a retest of the highs tomorrow morning.
Second, anytime we see such a BIG move in one day, the following day often turns sideways into a range.
Knowing this – buyers will be waiting to buy those deep pullbacks off the high with a target up at 15000.
Sellers don’t have any momentum right now so it’s best to stay patient – either for a crown reversal short off the highs or a 123-Reversal going lower.
Crude Oil Futures (CL):
Crude Oil Keys to Success:
Crude Oil is bullish and trying to break free of today’s trading-range.
Buyers have a lot of momentum as they rotate off the lows, but this range top and pendulum-swing resistance make a good argument for selling back into the range tomorrow morning.
Sellers need to stay patient, however, for buyers to try twice before they get short. I’ll be looking for a 2-try failure off the high.
Buyers have all the momentum, and they can easily breakout into a trend if they can hold the next pullback into a 123-breakout pattern. If so, I’ll look to buy the first pullback to the low of a new hidden channel.
