5 Ways to Short this Bounce on Wednesday

 

Are you ready for Wednesday?

Sellers took control of momentum today, giving us plenty of reasons to focus on the sell-side for another leg lower on Wednesday…

I’d love to short the Emini, but a strong bounce off today’s low tells me the buyers might not make it easy on me…

The Nasdaq looks great for a pendulum swing going lower, but I’ll need to avoid selling into rising support…

And Gold looks great for a short on the next bounce, but I’m waiting for a test of two resistance levels overhead…  I’m excited for Wednesday, are you?E-Mini S&P (ES):

E-Mini Keys to Success:

• Trending Market = Continuations, Reversals & new Ranges
• Sellers took control early in the session, took a break inside a range, then took price lower to complete a measured move before bouncing hard off the lows.
• Sellers will be looking for another retest of today’s low, while buyers will be looking for a full reversal back up to all-time highs.

Top 3 Trades for Tomorrow: 

• UP – buy the 2-try trap (or) sell the 2try reversal
• DOWN – sell the buyer failure (or) buy the bear trap

E-Mini Nasdaq (NQ):

Nasdaq Keys to Success:

• Range Market = Failures, Rotation & Breakouts
• Bears have control into a trading-range, which has just completed a pendulum-swing rotation up off the lows.
• Sellers will be looking for shorts off the high of the channel, while buyers need to wait for a change in momentum going higher.

Top 3 Trades for Tomorrow: 

• UP – buy the 123-Reversal (or) Sell the 2try Reversal
• DOWN – sell the buyer failure (or) buy the 2try Reversal off the lows
• SIDEWAYS – Sit on hands to avoid the range middle.  Sell resistance levels overhead.

Gold Futures (GC):

Gold Keys to Success:

• Range Market = Failures, Rotation & Breakouts
• Sellers have control and trying to complete a pendulum-swing rotation off the high of the range from yesterday.
• Sellers will be looking for shorts off resistance above the range, or breakouts going lower.
• Buyers have a tough job ahead of them because they need to shift momentum for the bulls and find an entry before we retest the highs.

Top 3 Trades for Tomorrow: 

• UP – sell the buyer failure (or) buy the 123-Reversal
• DOWN – sell the 2-Try breakout (or) buy the 2try Failure
• SIDEWAYS – avoid the middle of the range, wait to buy low, sell high.