Love these Trades for Tuesday!
We’re back to our desks for the last couple days of Summer, and I have some awesome trades on my radar…
The Eminis both made strong runs higher into ranges today, which means I’m looking to “trade the rotation” with failures, breakouts, and reversals tomorrow morning…
What about Gold? Gold is bearish and “grinding” lower, which means I’m looking for shorts off the high of a hidden channel overhead. But let’s not forget…
Gold made that strong spike higher last Friday, reminding us that buyers will be looking for another leg higher. I’ll be watching for signs of seller failure, and if so, will get aggressive with traps getting in for another leg higher…
It should be another great day in the markets tomorrow. Here are my favorite trades to help you finish the summer in the green!
E-Mini S&P (ES):
E-Mini Keys to Success:
- Range Market = Failures, Rotation & Breakouts
- Big move today often results in a range tomorrow
- Bulls took it higher into a trading-range to finish the session.
- Buyers looking to buy pullbacks at support levels below the range, and trade breakouts on strength going to new highs above the range.
- Sellers can sell off resistance above the range, or they can trade the 123-Reversal going lower.
Top 3 Trades for Tomorrow:
- UP – buy the 123-breakout (or) sell the 2-try failure
- DOWN – Buy the seller failure (or) sell the 123-Reversal
E-Mini Nasdaq (NQ):
Nasdaq Keys to Success:
- Range Market = Failures, Rotation & Breakouts
- Big move today may lead into a narrow range tomorrow FYI
- Buyers took price higher into a range, but finished the day with an attempted breakout which may succeed into a new trading-range, or it may fail into a pendulum-swing going lower.
- Buyers need to be careful up here, waiting for proof of this 123-breakout
- Sellers have the best options right now; selling a buyer failure back into the range, then selling the pendulum-swing reversal going lower.
Top 3 Trades for Tomorrow:
- UP – buy the 123-breakout (or) sell the 2-try failure
- DOWN – sell the 123-Reversal (or) buy the seller failure
- SIDEWAYS – sit on hands until we see the new range, then buy low at support with seller failure patterns.
Gold Futures (GC):
Gold Keys to Success:
- Trending Market = Continuations, Reversals & new Ranges
- Buyers began with a strong spike higher, but a 123-Reversal off the highs gives buyers control of momentum for a run back to 1800.
- Buyers can’t be counted out completely yet. That move higher on Friday was very strong (suggesting we get a retest at some point tomorrow), and we’re sitting on major support at 12.2, but with the bears in control, it’s hard to justify buying this pullback until we see sellers fail a few times.
Top 3 Trades for Tomorrow:
- UP – buy the 2-try trap (or) sell the buyer failure
- DOWN – sell the 123-Reversal & sell the 2-try trap
