Buy It or Sell It – What’s the Secret? | Crude Oil, Emini, Nasdaq, Gold, Euro
These markets are trying to fool us tonight – with strong momentum moves going against the trend, we need a plan to avoid the traps and stay patient for those high-quality set-ups…
But the big question I have is – “Buy it or Sell it, What’s the Secret?”
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Crude Oil is bullish with a combination of a Spike & Channel and trading-range, but the challenge we have going into Wednesday morning is the strength of this recent pullback.
I want to buy this market, but I need to respect the sellers long enough to trade into their stops for a short-covering rally back to the high tomorrow morning.
E-Mini S&P is bullish at first glance, but dig deeper and it’s easy to see why buying this pullback is a serious gamble with your trade account.
My plan is to wait for these aggressive buyers to “swing and miss” so I can sell into their stops for an easy run back to Monday’s low.
Nasdaq is bullish with a strong two-legged move higher today, but we’re trading directly into two levels of resistance, telling me I need to stay patient for more reliable buying opportunities.
Knowing this, I’m looking for sellers to try getting short off the major channel highs, and if/when they do, it should be easy to buy into their stops for a rally up to the next measured-move target waiting overhead.
Gold is bullish and trading at the low of a wide trading-range, which reminds me that this bearish momentum coming off the high is going to try shaking me out of a long position before it goes back to re-test the high.
Keeping this in mind, a better plan is to wait for the second leg from the sellers and use the falling resistance trend-line as key support to buy into their stops tomorrow morning.
Euro is bullish, but the strength of this recent pullback off the highs is too much to try buying into we can see a little more proof tomorrow morning.
Knowing this, we’re sitting right on two big levels of support, telling me this is a great place to look for a 2-Try Failure pattern for buying opportunities on Wednesday.
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Please remember that economic news, both scheduled and un-scheduled will increase volatility and decrease liquidity in the market in the short-term, which causes price-action to react inconsistently with the levels of support and resistance mentioned in this video. Trading during economic news reports is dangerous and highly discouraged, no matter what your level of experience.
PLEASE DO NOT TRADE DURING TIMES OF MAJOR ECONOMIC NEWS
Joseph James, SchoolOfTrade.com and United Business Servicing, Inc. are not registered investment or trading advisers. The services and content provided by SchoolOfTrade.com and United Business Servicing, Inc. are for educational purposes only, and should not be considered investment advice in any way. U.S. Government Required Disclaimer – Commodity Futures Trading Commission. Futures and Options trading have large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don’t trade with money you can’t afford to lose. This is neither a solicitation nor an offer to Buy/Sell futures or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this web site. The past performance of any trading system or methodology is not necessarily indicative of future results. cftc 4.41 These results are based on simulated or hypothetical performance results that have certain inherent limitations. Unlike the results shown in an actual performance record, these results do not represent actual trading. Also, because these trades have not actually been executed, these results may have under-or-over-compensated for the impact, if any, of certain market factors, such as liquidity. Simulated or hypothetical trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profits or losses similar to these being shown.