Don’t Short these Breakouts Until You Watch!

Welcome back to the action!

Everything’s bearish going into Tuesday, but look closely and you’ll see it’s hard to find a safe way to get short…

Emini and Nasdaq are both range-bound with a recent breakout lower – it’s tempting to chase this breakout, but I have (2) two reversal trades I’d rather wait for…

Crude Oil is bearish and range-bound too, but I have two big reasons to stay focused on the long side, waiting for (3) three entry patterns to trigger…

Markets were a bit messy today, but that usually means we have some big moves on the horizon – don’t miss these trades on Tuesday…

E-Mini S&P (ES):

E-Mini Keys to Success:

Emini is bearish with a strong breakout below today’s trading-range, but it’s hard to look short when you’re sitting at support levels below today’s massive trading-range.

Buyers will be looking for ways to ‘trap’ sellers using the 2-Try Rule for an easy run higher, and they can look for add-on entries off new channel lows ahead of the range high.

Sellers need to stay patient right now – we need them to prove this move with a 123-breakout pattern before we can look for shorts off the high of a new channel.

E-Mini Nasdaq (NQ):

Nasdaq Keys to Success:

Nasdaq is bearish, but after recently completing it’s measured-move breakout, it’s easy to see buyers looking for ways to get back up into today’s trading-range.

Buyers need to stay patient right now (because sellers have all the momentum), but they can start looking for buying opportunities using the 2-Try Rule to trap in sellers around these lows.

Sellers do have options, but they need proof with a 123-breakout pattern to confirm this isn’t just another range breakout that will quickly run back up into the range (magnet) above us. 

Crude Oil Futures (CL):

Crude Oil Keys to Success:

Crude Oil is bearish into a trading-range, but when you combine the lack of rotation below today’s range with that strong run higher last Friday, it’s easy to see buyers are in control of this market right now.

Knowing this, we know buyers will be looking for entries at support levels below the range, along with breakouts going higher.

Sellers need to be careful, because anything less than a strong breakout lower will likely be seen as a buying opportunity until we retest last Friday’s high.