Markets are still reeling after this week’s early round of earnings reports, and with most of our markets now re-testing their weekly highs and lows – the big question on my mind this evening is – “should I trade it, or should I fade it?”
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Markets are still reeling after this week’s early round of earnings reports, and with most of our markets now re-testing their weekly highs and lows – the big question on my mind this evening is – “should I trade it, or should I fade it?”
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Crude Oil is bearish into a small trading-range this evening, which tells me to look for selling-opportunities using buyer-failures up at range-expansion levels waiting overhead.
And speaking of overhead resistance, there is a major trend-line coming down overhead as well, which makes for an excellent location to “fade” the next move higher.
E-Mini S&P is bearish as the bulls appear to be taking profit off their weekly highs, but we’ve seen this story many times before – reminding us that this is most likely just a deep pullback in this overall bullish trend.
Knowing this, I want to buy the pullback, but I still need to respect the momentum of the sellers – so the best plan of attack is to wait for the “nested” failure set-up to trigger the long-side going back up to re-test the high.
Nasdaq is bullish and just re-tested the weekly highs on a strong spike higher, which tells me to look for buying opportunities, but I need to wait for more information because these highs are the last place I want to start buying.
Keeping that in mind, I'm waiting for a 123-Breakout for confirmation that I can trade it – but if the buyers struggle at these highs, I'm looking for a '2-Try Rule' buyer-failure to fade it back down to the lows again.
Gold is bullish after a beautiful 123-Reversal off the weekly lows, which tells me to look for buying opportunities at the intersection of a new Hidden Channel and reversal-line tomorrow morning.
And don’t forget – the high of the monthly range is just a few points overhead, which reminds us NOT to chase this market higher, waiting patiently for bear-tr..
