Gold, Euro, and Oil are all trading sideways this evening, which makes it easy for us to identify high-quality set-ups (and traps to avoid) on Wednesday…
But the real story of the day is the short-covering rally we saw on the E-Minis – which tell u…
Gold, Euro, and Oil are all trading sideways this evening, which makes it easy for us to identify high-quality set-ups (and traps to avoid) on Wednesday…
But the real story of the day is the short-covering rally we saw on the E-Minis – which tell us where to find the best set-ups, and (most importantly) what to avoid tomorrow morning. Are you ready?
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Crude Oil is bearish with a strong move lower after today’s API Report sent prices racing lower…
But look closely, and you can see we’re back to the low of a trading-range, telling me to respect the bearish momentum, but looking for buying opportunities using the “nested” failure pattern.
E-Mini S&P is bullish with a wedge as it runs all the way back to the range from late May…
But the most important clue on this chart is this short-covering rally, which reminds us to stay patient and wait for the market to go sideways before looking for buy set-ups off the battle-zone tomorrow morning.
Nasdaq is bullish with wide channel and short-covering rally running higher, which tells me to avoid the temptation to “chase” the move higher, staying patient and looking for buy set-ups after a deep pullback on Wednesday morning.
Gold is bullish into a trading-range, telling me to buy the lows of the range using seller-failure set-ups…
The concern, however, is the momentum of the sellers as this market pulls back to the lows. I don’t want to buy into bearish momentum, so I'm looking for the nested failure set-up if we get the deep pullback I'm expecting on Wednesday.
Euro is bullish into a triangle pattern, which tells us to look for buy set-ups below the range lows using seller-failures for a rally back to the high again.
I also need to anticipate the potential breakout when the triangle comes to an end, and since most of those breakouts will fail and go right back into the rang..
