Trade the Drop! (Or the News Pop?!)

Will we finally get the drop we’ve been waiting for tomorrow?

With markets “rotating” off the high of weekly ranges, sellers are looking for ways to get short into this drop back to weekly lows…

But with BIG inflation news on the schedule tomorrow, we might see another one of those “bad news is good news” pops instead…

Not to worry – I’ll make sure you’re covered in both directions; selling the drop, or trading the news reaction pop! 

E-Mini S&P (ES):

E-Mini Keys to Success:

• Bulls tried to breakout above range highs but the bears were ready to short into their stops for a reversal back into the range (magnet) below.
• Sellers will be looking for entries on the way back to complete the pendulum-swing on the opposite side of the range
• Buyers need to be patient until momentum swings in their favor, or they need to wait for a bounce off the low of the range down around 4210

Best Trades for Tomorrow: 

• Range = failures, rotation, breakouts
• Sell the buyer failure above the range
• Sell the bull traps as price rotates lower
• Sell the 123-breakout if price gains momentum as we move lower.
• Buy the 123-breakout to new highs
• Buy the seller failure off range lows.

E-Mini Nasdaq (NQ):

Nasdaq Keys to Success:

• Buyers got a strong break higher to start the session, but after buyers tried twice and failed, price now begins its rotation back down to the pendulum-swing on the opposite side.

Best Trades for Tomorrow:

• Range = Failures, Rotation, Breakouts
• Sell the buyer failure above the range
• Sell the bull traps as we complete the pendulum-swing
• Sell the 123-breakout below the range with strong momentum
• Buy the low of the range with seller failure
• Buy the bull breakout to new highs.

Gold Futures (GC):

Gold Keys to Success:

• Bulls never got a chance to make a run today because sellers were waiting to short into the first pop of the day, sending price rotating lower to our intended pendulum-swing target waiting below.
• Sellers will be looking for entries at resistance above the range, being careful not to get fooled into taking entries INSIDE the range.
• Sellers will also be looking for trap entries and 123-breakout entries as price continues lower.
• Buyers don’t have any momentum, so they’ll need to be patient to buy off range lows, or buy bull breakouts to new highs.

Best Trades for Tomorrow:

• Range = Failures, Rotation, Breakouts
• Sell failures above the range
• Sell traps inside the range
• Sell traps & 123-breakout going lower
• Buy failures and 123-Reversals off range lows.
• Buy 123-breakout above range highs.