Trade Deep Pullbacks with Small Stops
It might be a new week and a new month, but the strategy stays the same, and looking at the charts tonight I can see plenty of reliable trading opportunities setting-up for Tuesday’s trading…
One thing that stands out tonight, is that strong run higher at the opening-bell this morning, which didn’t give buyers many opportunities to participate…
And whenever I see a move like that, I know to expect a DEEP pullback to give the buyers another shot, but DEEP pullbacks come with some challenges, and I want to make sure you’re ready for that set-up tomorrow morning – are you with me? Let’s go…
Oil Sitting at Critical Support Here…
Crude Oil is bearish and sitting right on today’s low, which isn’t a very reliable place to start selling; I’d rather wait to sell at resistance instead…
One option is to wait for a bounce off the lows and get short into a buyer-failure above the moving-average…
But if price keeps pushing lower, I’m going to have no choice but to get aggressive, and I’ll be looking for a 2-Try Trap to get short above a recent swing-high.
E-Mini Buyers Waiting on a Pullback
E-Mini S&P is bullish into a range, which tells me to buy the low, sell the high, and avoid the middle on Tuesday morning…
But the BIG clue on the Emini is that blast higher at the opening-bell this morning, which left a lot of buyers waiting for the next deep pullback…
And remember, deep pullbacks might give us great risk-reward ratios, but they come at a price, so we need to time the entry properly with the correct pattern…
Watch the Exp Triangle on Nasdaq…
Nasdaq is bullish into a trading-range, telling me to look for buying opportunities using seller-failure patterns below the range low tomorrow morning…
But just like the S&P, the Nasdaq also had a strong run at the opening-bell, which reminds me to stay patient to buy the deep pullback with the “nested” entry pattern…
Gold Sellers Waiting to Reload…
Gold is bearish into a trading-range, which tells me to sell the high, buy the low, and avoid the middle of the range tomorrow morning…
And since the sellers are rotating higher off today’s low, I’d like to see the buyers take a swing at the reversal before I look for the opportunity to sell into their stops for a re-test of the low.
