Watch for THIS Breakout on Wednesday!

Hope you enjoyed the Holiday break, but it’s back to work with a busy week of news and trading opportunities ahead of us!

Big news on the schedule tomorrow has our favorite markets trading inside ranges this evening, which means we’re looking for breakouts (and failures) on Wednesday…

Remember – ranges act like magnets, so failures around the edges of the range will be the easy winners.  And when it comes to the breakouts, there’s ONE breakout that gets me most excited on the Eminis and Gold.  Don’t miss this one…

E-Mini S&P (ES):

E-Mini Keys to Success:

• We spent most of the day inside a range today, but with buyers retesting major highs and reversing lower, we assume sellers are on a mission to take out the lows below and possibly make a run down to major lows at 4280.
• Sellers will be looking for entries before we retest today’s low, or breakout entries going lower on strength.
• Buyers don’t have any momentum to work with, so they’ll need to stay patient for signs of exhaustion (or a reversal) before they look for entries long.

Best Trades for Tomorrow: 

• UP – sell the trap & buyer failure (or) buy the 123-Reversal
• DOWN – sell the 123-breakout (or) buy the seller failure

E-Mini Nasdaq (NQ):

Nasdaq Keys to Success:

• Bull tried taking it higher in the pre-market, but sellers took price lower into a range, and now have retested major lows where we wait for more information from here.
• Will sellers take it lower to the next support zone at 14430, or will buyers send price back higher into the range (magnet) waiting above.

Best Trades for Tomorrow: 

• UP – sell the buyer failure (or) buy the 123-Reversal
• DOWN – sell the 123-breakout
• SIDEWAYS – wait for a new range, then sell buyer failures above it

Gold Futures (GC):

Gold Keys to Success:

• Bulls tried a breakout going higher this morning, but sellers were too strong and they’re not looking for rotation back down to complete the pendulum-swing target near last week’s lows.
• Sellers will be looking for ways to “trade the rotation” going lower.
• Buyers don’t have any momentum going right now, so it’s wise to stay patient for a reversal, or signs of exhaustion down near the range lows tomorrow morning.

Best Trades for Tomorrow: 

• UP – sell the buyer failure (or) buy the 123-Reversal
• DOWN – Sell the breakout-pullback (or) buy the seller failure off major lows
• SIDEWAYS – sit on hands to avoid the range, wait to sell above the highs, or sell a breakout going lower.