Trading a ‘Melt-Up’ Market on Friday

Can anything stop these buyers right now?

Markets continue to stay bullish going into Friday’s session, but with markets “melting” higher on low volume, you need to be ready with the right strategy…

I’d love to trap in the bears on the Emini and Nasdaq, and I’m looking for a pendulum-swing breakout running higher on Gold.  Are you ready?

E-Mini S&P (ES):

E-Mini Keys to Success:

• Trending Market = Continuations, Reversals & new Ranges
• The day began trading sideways in a range, but buyers got the dip they wanted and price exploded higher with a breakout.
• Bulls have control on strength, so any pullback to support will be seen as a buying opportunity on the way up to the measured-move overhead.
• Sellers need to stay patient

Top 3 Trades for Tomorrow: 

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

E-Mini Nasdaq (NQ):

Nasdaq Keys to Success:

• Trending Market = Continuations, Reversals & new Ranges
• Bulls took it higher into a range, but an after pullback was met with plenty of buyers and price raced higher towards all-time highs.
• Buyers have control with an open-loop, so any pullback to support will be seen as a buying opportunity to finish the week.
• Sellers must stay patient until they see exhaustion at these highs, or until they get a confirmed 123-Reversal off the highs.

Top 3 Trades for Tomorrow: 

• UP – buy the 2-try trap (or) sell the exhaustion reversal
• DOWN – buy the seller failure (or) sell the 123-Reversal
• SIDEWAYS – wait for new range to form, then buy support levels below the range.

Gold Futures (GC):

Gold Keys to Success:

• Range Market = Failures, Rotation & Breakouts
• Sellers tried to breakout below the range, but now the buyers have control with a pendulum-swing rotation coming off the lows.  Can they get a breakout on the opposite side?
• Buyers have control, and they’ll be looking to buy pullbacks at support along with breakouts going higher.
• Sellers don’t have many options right now with this support trend-line in their way.  They need to get a reversal on strength to convince us to look for shorts.

Top 3 Trades for Tomorrow: 

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