Trade the Market’s Mindset

We’re heading into a busy, holiday-shortened week ahead of us – and with major news on the calendar and various types of range-bound markets on the charts, the secret to our success tomorrow is quite simple…

We need to get into the mindset of the market for the most reliable trade set-ups on Tuesday – are you ready?

Crude Oil is Begging Me to Chase It…(Resist!)

Crude Oil is sideways and trading in the middle of last Friday’s trading-range, which reminds me to avoid the middle, buy the low, and sell the high.

Knowing this, the real secret is going to be waiting for a potential breakout and then “fading” the move back into the original trading-range using failure set-ups.

E-Mini S&P Might Get Ugly (Here’s Why)

E-Mini S&P is bullish as it comes off the low of a wide trading-range from earlier in May, but don’t let the bullishness fool you into chasing the move higher.

A better strategy for tomorrow is to avoid the middle of this wide range, and wait for the next round of sellers to fail so I can buy into their stops, as close to the low of this range as possible.

Nasdaq is Range-Bound (But Will It Last?)

Nasdaq is bearish into a trading-range, which tells me to look for selling-opportunities up above the high of the range using buyer-failure patterns.

But I’m not ignoring the buy-side of this market either – knowing that the E-Mini S&P has the potential to rally higher, all we need is a 123-Breakout to start looking for buy set-ups at the low of the Hidden Channel.

Gold is Balanced and Waiting for a Pullback

Gold is bearish and tucked into a narrow trading-range this evening, which tells me to look for selling-opportunities using buyer-failures up above the high of the range.

The tricky part is how narrow this range is –telling us the market’s mindset will be waiting for a better risk-reward-ratio using much wide expansion levels, so stay patient!

Euro is Waiting to Pop (So We Can Short It)

Euro is bearish and sitting at the low of a Hidden Channel, which reminds me to look for selling-opportunities at the high of the channel.

And with the short-term trading-range on the chart, I’d love to see the bulls try a breakout higher so I can combine the high of the channel with the range-expansions levels for sell set-ups going back down to the lows again.

“Knowing is not enough; We must apply. Willing is not enough; We must do.“