Traders Playing “Catch Up”

We’re back in the action after last week’s Holiday break, and with last week’s holiday overlapping two major news reports, we know many traders are playing “catch up” with the markets this week…

Knowing this, most of our markets are trying to hit the “reset” button by re-testing last week’s highs/lows, and I have the perfect strategy to capitalize on those moves – are you ready for Tuesday?

Crude Oil Wants to Re-Test the Channel Low

Crude Oil is bearish as it comes tumbling off the high of a bear flag this evening, telling me to look for sell set-ups on the way back to re-test the lows…

And speaking of the lows, the trading-range on the chart reminds me to keep my eyes open for buy set-ups coming off the lows, but as always, it’s the short-term momentum that will determine which entry pattern we use.

E-Mini S&P is Only Inches Away from July’s Low

E-Mini S&P is bearish into a narrow trading-range this evening, telling me to look for sell set-ups up above the high of the range tomorrow morning…

And if we get lucky, we might get a strong bounce higher, giving us the opportunity to sell the high of this new Hidden Channel coming down overhead.

Nasdaq is Begging Us to Short the Hidden Channel

Nasdaq is bearish and trading sideways with a narrow trading-range, telling me to look for sell set-ups up above the range highs tomorrow morning.

Knowing this, I’d also love to sell the high of the Hidden Channel overhead, but the short-term momentum will likely be rather bullish if that occurs, so I’ll be looking to sell with the “nested’ buyer-failure set-up instead.

Gold Has Two Patterns Confirming the Plan

Gold is bearish with the combination of a bear flag and Spike & Channel both telling us to look for sell set-ups using buyer-failures up around the 1402 level on Tuesday morning…

And if price keeps running lower, I need to worry about the major support level below us, and will shift my focus to selling with bull-traps instead.

Euro is Clearly Waiting on Something (But What?)

Euro is bearish into a narrow trading-range this evening, which tells me to look for sell set-ups using buyer-failures up above the high of the range tomorrow morning…

But I’m also keeping my eyes open for another leg lower, into a Spike & Channel, which would tell me to look for the same sell set-ups off the high of the new channel instead.

“Would you like me to give you a formula for success? It’s quite simple, really; Double your rate of failure. You are thinking of failure as the enemy of success. But it isn’t at all. You can be discouraged by failure or you can learn from it, so go ahead and make mistakes. Make all you can. Because remember that’s where you will find success.”