We had a lot of deep pullbacks to finish today’s session, and one question on my mind going into Wednesday morning – is this a pullback or a full reversal?
The answer to that question is important, because a reversal tells me I should be selling th…
We had a lot of deep pullbacks to finish today’s session, and one question on my mind going into Wednesday morning – is this a pullback or a full reversal?
The answer to that question is important, because a reversal tells me I should be selling this move lower on Oil and the E-minis, and buying this move higher on Gold…
So what’s the trick? How do you know if this late-session move is a pullback or is it a full-blown reversal? And what’s the best strategy? I’ve got you covered in tonight’s newsletter – are you ready?
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Crude Oil is bullish and trading just below a trading-range this evening, which is a great place to look for a buy setup using a seller-failure pattern tomorrow morning…
But I’d like to see us pullback a little further for a better entry, because I have three major support levels are stacked-up down and 56.40 and I’d rather look for the buy setup with a bigger target back into the range.
E-Mini S&P is bullish and trading at the low of a wide bull channel, which is a good spot to look for a buy setup, but this bearish momentum tells me I need to wait for the sellers to try twice before buying it back up again, so I'm going to wait for a “nested” seller-failure pattern for a more reliable entry.
I'm also watching for a range-bound market tomorrow because we have the head of the FED (Powell) speaking at 11am, and if so, I'm going to switch my strategy to buying low, selling high, avoiding the middle and focused on failures.
Nasdaq is bullish, but this recent pullback was too strong for me to try buying off the low of this channel, so I'm going to wait for a more reliable entry by using a “nested” failure with a trap below the low of this morning’s trading-range…
And speaking of range, that’s definitely on my ..
