With most professional traders sitting on the sidelines this afternoon for the FOMC Announcement, we know that tomorrow (what I call “Reaction Thursday”) has the potential to be a very busy trading day…
And with a lot of strong moves in the wake of this afternoon’s rate cut, I'm looking closely at the charts, finding the “velocity zones” where I can wait for the opportunity to buy a pullback – are you ready?
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Crude Oil is bearish and keeps grinding lower as the week goes on, and the lack of any real pullback off these lows is a big clue for tomorrow morning…
Knowing this, I can assume there are a lot of sellers waiting up at the highs of the bear channel, and I’m waiting for the next pop higher so I can sell it back down again.
E-Mini S&P is bullish with a strong spike running higher, which tells me to look for one of three different chart patterns – channels, ranges, and flags…
But the most important clue on the chart is what we DIDN’T see this afternoon, and that important clue helps me define the “velocity zones” where I'm looking for my buy set-ups on Thursday morning…
Nasdaq is bullish with a strong run higher, and the strength of this move tells me that buyers will be eagerly waiting to buy the next pullback to support levels…
So I’ve marked the higher-highs with a trend-line, and used that to find a new Hidden Channel to buy off the lows tomorrow morning…
Gold is bearish, but look at the bigger picture and it’s easy to see we’re trading below the weekly trading-range, which isn’t a great place to be selling…
I’d rather be a buyer off these lows, but I need to respect the bearish momentum before I commit to the entry, and I'm looking for a “nested” seller-failure to buy it back up into the range tomorrow morning.
Eu..
