Momentum is a BIG factor going into Tuesday’s trading session – with strong counter-trend swings and wide trading-ranges, we a strategy that not only respects that momentum, but harnesses the strength of that momentum to help us reach our targets tomorrow morning.
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Crude Oil is bearish, but this short-covering rally coming off the measured-move tells me that I need to respect the bullish momentum before I try selling at key resistance levels overhead.
Knowing this, I'm going to wait for a test of resistance, followed by a “nested” failure set-up for the most reliable selling-opportunities tomorrow morning.
E-Mini S&P is bullish, but we’re sitting smack in the middle of a WIDE trading range, which tells me to sit-on-hands and wait for more reliable buying opportunities down near the lows.
But don’t forget about these highs – if the bulls finish this move back to the highs, then I want to sell off the high, but with momentum being so bullish, I need to stay patient and harness that momentum for a 2-Try Failure going back to the lows.
Nasdaq is bullish and trading at the high of a range this evening, which means we’re too high to buy, and I need to stay patient.
I’d like to sell the high, but first I need to harness the momentum using a “nested” failure set-up.
And don’t forget about the possible breakout, reminding me to wait for the 123-Breakout for my next buying opportunities going higher.
Gold is bearish and pulling back to the key resistance level called a “reversal-line”, which is always a great place to look for sell set-ups.
The challenge, however, is this move higher, which is VERY bullish; so rather then trying to sell this market, I'm going to wait for the buyers to try and fail before pulling the trigger.
Euro is bullish into a triangle pattern, which tells me to focus on failure set-ups around the..
