TRAP ALERT! These (3) TRAPS Could Be Biggest Trades of Week
Do You smell that? Smells like a trap!!
Markets made big moves higher today, which means big opportunity for “traps” on Thursday…
In fact, these (3) traps could be the biggest trades of the week!!
Emini and Nasdaq are bullish with a strong run higher, but look where we are, back to the high of the range we spoke about last night!
Crude Oil is bullish with a strong “hurricane” run higher – I’m definitely looking for pullbacks, but don’t be surprised if we get this “double-top reversal!”
E-Mini Nasdaq (NQ):
The Nasdaq is bullish with a strong run higher, suggesting that buyers will be looking for pullback entries and a retest of today’s high.
Keep in mind – we’re still bearish overall, and we’re now at the highs of a larger range, so sellers could easily run this all the way back to the lows tomorrow.
Keys to Success:
- Bear Bias, Strong Move Higher, Multi-Day range
- Bulls want to buy a pullback for a retest of the high
- Bears want a reversal back to today’s low.
E-Mini S&P (ES):
The Emini is bullish with a strong run higher today, telling us that buyers will be looking for pullback entries ahead of a retest of today’s high.
But don’t forget – we’re also trading at the high of a multi-day range, so this could easily be a bull trap ahead of a massive run back down tomorrow!
Keys to Success:
- Bear Bias, Strong move higher, multi-day range
- Bulls want to buy a pullback for a retest of today’s high.
- Bears want to sell a reversal for a move back to today’s low
Crude Oil Futures (CL):
Crude Oil is bullish with a strong move higher as well. Anytime we see a strong move higher, we expect buyers to be waiting for a pullback and a retest of the high.
Keep in mind – Hurricane Ian still contributing to the bullish sentiment at this time, but we’ll monitor that closely over the next 24 hours.
Keys to Success:
- Strong Move higher, Hurricane Ian, Bear Bias overall
- Bulls want to buy a deep pullback for a retest of the high
- Bears want a reversal off the high
