My Favorite Momentum Trades For Thursday

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Are you watching these momentum swings on Thursday?

We started the week with range-bound markets, but as we saw today, the bulls are struggling to breakout to new highs…

Knowing this, I have to assume buyers are waiting to reload their positions at lower prices, but the only way we get there is with a deep pullback off the high…

I’d love a deep pullback, but the momentum of the market as it swings off the highs will be extreme, and I want to make sure you know the best entry patterns to capitalize on them.  Here’s my game plan for tomorrow…

E-Mini Keys to Success:

  • Market collapsed off the high, filled the weekend gap, then went sideways into lunch before the bulls complete the pendulum swing higher.
  • Bulls Want to retest the all-time highs and push higher
  • Bears Want to retest the prior all-time high down at 3862.25

Best Setups for Tomorrow: 

  • [UP] – 2-try trap / 123-breakout to buy (or) crown reversal to sell
  • [DOWN] – nested failure to buy (or) 123-breakout to sell
  • [SIDEWAYS] – sit on hands, wait for a breakout

Crude Oil Keys to Success:

  • Bulls retested major highs but were unable to break thru. Expect price to pull back to attract more buyers at lower prices or breakout higher up to $60
  • Bulls Want to buy a deep pullback around the pendulum swing
  • Bears Want to reverse momentum back to major lows.

Best Setups for Tomorrow:

  • [UP] – 123-breakout to buy (or) crown reversal to sell
  • [DOWN] – nested failure to buy (or) 123-Reversal to sell
  • [SIDEWAYS] – sit on hands, wait for a breakout to buy low, sell high

Gold Keys to Success:

  • Bulls failed on a breakout above yesterday’s range
  • Bulls Want to break out to new highs and retest 1878.6 highs
  • Bears Want to finish the pendulum swing and maybe the weekend GAP

Best Setups for Tomorrow:

  • [UP] – a crown reversal to sell (or) 123-breakout to buy
  • [DOWN] – nested failure to buy (or) 123-Reversal to sell
  • [SIDEWAYS] – sit on hands, wait to fade breakouts.  Buy low, sell high with failures

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