3 Ways To Short Today’s Bounce (Tuesday’s Plan)

(Video length 00:44:31)

We’re back to our desks once again, and the markets didn’t waste any time getting the month of February started with a strong push higher…

I’m usually looking to buy pullbacks in a bull market like this, but with major levels of resistance above us, and ranges acting like magnets below us, I’m looking for (3) three powerful entry patterns to short this bounce tomorrow morning. 

Emini ES is bullish, but a failed close inside last week’s range is a big bearish clue. 

Crude Oil is bullish, but a wedge pattern into last week's high makes me think twice about buying, and Gold is range-bound with a weekend GAP still unfilled, so I’ll be looking to short the pops above the range. 

E-Mini Keys to Success:

  • Bullish into a range, bull breakout, now fading back into the range.  Great place to get short with a good entry setup.
  • Bears Want to get short back to the range…
  • Bulls Want to hold the channel low for another leg higher…

Best Setups for Tomorrow: 

  • [DOWN] – Crown reversal or 123-Reversal to sell (or) 2-legged pullback to buy
  • [UP] – 2-try trap to buy (or) crown reversal to sell
  • [SIDEWAYS] – sit on hands and wait for breakout

Crude Oil Keys to Success:

  • Bullish into a range, then bull breakout to measured-move at major highs. Great place to get short with the right setup.
  • Bears Want to sell with a nested failure back into the range…
  • Bulls Want to hold the low of this channel or get a new range at these highs…

Best Setups for Tomorrow:

  • [DOWN] – nested failure to sell (or) nested failure to buy channel low
  • [UP] – 123-breakout, 2-Try breakout to buy (or) crown reversal to sell
  • [SIDEWAYS] – sit on hands, wait to buy below range with seller failure pattern.

Gold Keys to Success:

  • Bullish into a range at major highs, great place to get short above the range
  • Bears Want to short above range highs
  • Bulls Want to buy below the range around the expanding triangle support
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