Trade the Bounce or the Breakout? My Plan for Wednesday.

Markets are bearish going into Wednesday’s trading session, and since we finished today inside a range, I’ll be looking to either (a) short the bounces or (b) short the breakouts.  Either way, I have some great trades to watch on Wednesday…

E-Mini S&P (ES):

E-Mini Keys to Success:

• Bears took price two legs lower into a sideways trading-range, telling us to look for sell setups at resistance levels above the range, or wait for a 123-breakout.
• Bulls want to reverse the trend with a 123-Reversal going higher.
• Bears want to sell the pops above the range

Best Trades for Tomorrow: 

• [UP] – buyer failure to sell (or) 123-Reversal to buy
• [DOWN] – 2-try trap to sell (or) nested failure to buy
• [SIDEWAYS] – wait for the breakout, focus on selling above the range

E-Mini Nasdaq (NQ):

Nasdaq Keys to Success:

• Bears run price lower on strength, finishing the day in a sideways trading-range. 
• Bulls want to reverse the trend going back up into the range from Monday
• Bears want to sell at resistance levels up above the trading-range

Best Trades for Tomorrow:

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

Gold Futures (GC):

Gold Keys to Success:

• Bearish into a spike and channel/range, which tells us to look for sell setups at the base of the channel and/or resistance levels above the range high.
• Bears want to sell this retracement under the support trend-line for a retest of the lows
• Bulls want to trade sideways to absorb sellers and then buy below the range from Monday

Best Trades for Tomorrow:

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