Trade the ‘Rotation’ on Tuesday

We have a busy week ahead; I hope you’re ready!

We’re back to our desks for the final week of July, which means we’re expecting more volatility, and plenty of trading opportunities in our favorite markets…

Speaking of opportunities – the key to our success on Tuesday will be “trading the rotation” from one side of the range to the other…

What’s rotation?  Why is it important?  I cover all the details (and my favorite entries) in tonight’s video…

E-Mini S&P (ES):

E-Mini Keys to Success:

• Trending Market = Continuations, Reversals & new Ranges
• After last Friday’s strong push higher, buyers were eager to “buy the dip” to start the session and they’re trying to complete the pendulum-swing target up overhead.
• Buyers have control on strong momentum so they’ll be looking for pullback entries around the low of the channel and just below prior swings.
• Sellers need to stay patient for either exhaustion at these highs, or a reversal going lower.

Top 3 Trades for Tomorrow: 

• UP – buy the 2-try trap (or) sell the 2-Try Reversal
• DOWN – buy the seller failure (or) sell the 123-Reversal
• SIDEWAYS – Wait for the new range, then buy support levels below it.

E-Mini Nasdaq (NQ):

Nasdaq Keys to Success:

• Range Market = Failures, Rotation & Breakouts
• Buyers got long on the first pullback after last Friday’s big run higher, but they appear to be struggling to find more buyers at new highs ahead of tomorrow’s “tech Tuesday’ earnings session.
• Buyers have control, but they’ll need to see a strong move higher to confirm the pendulum-swing target, or a deep pullback below the range to buy the lows.
• Sellers will stay patient, wait for a failed bull breakout to short, or a 123-Reversal after news tomorrow morning

Top 3 Trades for Tomorrow: 

• UP – buy the 2-try trap (or) sell the 2-Try Reversal
• DOWN – buy the seller failure (or) sell the 123-breakout
• SIDEWAYS – sit on hands and wait for a breakout.  Avoid the middle.

Gold Futures (GC):