Trading the “Reaction”

Markets are bullish after today’s FOMC Announcement, but the lack of follow-through to new highs still leaves yesterday’s ranges in-tact for tomorrow morning…

Knowing this, my focus will be on failure set-ups going back into the ranges from earlier this week…

And with most professionals on the sidelines for the FOMC report, everyone will be trading the “reaction” tomorrow morning – are you ready?

Crude Oil Wants Us to Chase It (Should We?)

Crude Oil is bullish and trading at the high of the range this evening, which tells me to look for sell set-ups going back into the range tomorrow morning.

The challenge, however, is that this momentum is too bullish to try selling, so I need to wait for a “nested” failure pattern to pull the trigger.

E-Mini S&P Tells Us Exactly Where to Look (See It?)

E-Mini S&P is bullish and trading at the high of the range, which tells me to look for sell set-ups going back into the range.

But the biggest clue on this chart is the possible Spike & Channel pattern, which tells me exactly where to look for buy set-ups at the low of the range tomorrow morning.

Nasdaq Looks Pathetic at These Highs!

Nasdaq is bullish after this afternoon’s FOMC Announcement, but look closely and you can see they failed to re-test the news-spike highs, which is a big clue that the range is still the most important piece of this puzzle.

Knowing this, I’m looking for sell set-ups to short back down into the range, and my goal is to use a crown reversal pattern to time the entry.

Gold Is Running Hard, Should I Wait for a Pullback?

Gold is bullish with a strong run higher, but with multiple resistance levels waiting overhead, I know it’s too high to start buying at this point…

So my goal is to wait for a pullback, which will likely develop into one of four scenarios overnight, and once I know more information I’ll be able to execute the correct strategy tomorrow morning.

Euro is Trying to Fool Us (Wait for the Failure!)

Euro is bullish with a flag pattern, but looking closely at the chart and you can see we’re trading at the high of last week’s trading-range, which tells me to avoid buying and focus on sell set-ups back into the range tomorrow morning.

The challenge, however, is that we’re already back inside the range, and I don’t want to sell this low, so I’m waiting for a “failed flag” pattern to short the bounce instead.

“Strength does not come from winning. Your struggles develop your strengths. When you go through hardships and decide not to surrender, that is strength.”