Finally! I’ve Been Waiting for this Trade All Week!

Heading into Friday’s trading session, and we have one of my favorite trades setting up as we speak…

The Emini and Nasdaq are both range-bound right now, and with this afternoon’s selloff into the close, we know bears will be looking for ways to “finish the rotation” tomorrow morning…

Gold is also range-bound, and even though buyers have momentum, it’s easy to see why the “easy money” will be for the sellers tomorrow…

But there’s ONE TRADE that I’ve been waiting for all week – you’ll regret missing this one for sure.  Let me show you…

E-Mini S&P (ES):

E-Mini Keys to Success:

• Buyers just completed their pendulum-swing rotation back to all-time highs where we now look for sell setups going back in the opposite direction, or proof of a breakout with another leg higher.
• Sellers have a great opportunity to take it lower, but this recent spike higher tells them to stay patient for buyers to fail first.
• Buyers have all the momentum, but this is a hard place to buy until we see sellers fail a few times as well.

Best Trades for Tomorrow: 

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

E-Mini Nasdaq (NQ):

Nasdaq Keys to Success:

• Buyers took price higher today, testing the high of an expanding triangle but missing their pendulum-swing target before profit-taking sent price racing lower.
• Sellers have all the momentum and will be looking for shorts off the high of this new channel, or selling traps and pullbacks as we make our way back to today’s low.
• Buyers need to stay patient for opportunities to buy off the major range lows, or wait for a reversal to get momentum back going higher.

Best Trades for Tomorrow: 

• UP – sell the buyer failure (or) buy the 123-Reversal
• DOWN – sell the bull traps off hidden channel highs

Gold Futures (GC):

Gold Keys to Success:

• We’re bullish into a trading-range right now, but buyers aren’t finishing their “rotation” off the lows, suggesting that a strong move lower might be coming soon.
• Sellers will be looking for shorts off resistance levels above range highs, or selling into a breakout running lower.
• Buyers have momentum on their side and will be looking for breakouts going higher on strength, or reversals off range lows.

Best Trades for Tomorrow: 

• UP – sell the buyer failure (or) buy the bull breakout
• DOWN – sell the 123-breakout (or) buy the seller failure
• SIDEWAYS – sit on hands and avoid the range middle.  Wait for a breakout.