Are You Seeing This Short Squeeze?

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It’s hard to find a place to get short right now!

Gold completed its ‘pendulum swing pullback’ off today’s low and looks ready to make another run higher, and the Eminis finished their session with bulls back in control again too!

The biggest clue, however, is the fact that it’s nearly impossible to find a decent way to get short! Knowing this, I’ll be looking for ways to buy pullbacks and breakouts on Wednesday morning – here are my favorite trades to watch…

E-Mini S&P (ES):

(Click on image to enlarge)

E-Mini Keys to Success:

  • The bears had control for most of the day, but we finished with bullish momentum coming off the lows into a trading-range.
  • Sellers have a hard time going forward because there isn’t much momentum or space for them to get short.
  • I’d rather be a buyer below the range and buying breakouts going higher.

Best Trades for Tomorrow: 

  • [UP] – 123-breakout or 2-Try breakout to buy
  • [DOWN] – seller failure to buy (or) 123-breakout to sell
  • [SIDEWAYS] – stay patient, avoid the middle

E-Mini Nasdaq (NQ):

(Click on image to enlarge)

Nasdaq Keys to Success:

  • Bears took control at the beginning of the day, but buyers were able to wrestle momentum away and finished the day with a bullish range.
  • Sellers are going to have a hard time finding an easy way to get short, which gives buyers the opportunity they need to buy the dips or buy the bull breakouts.

Best Trades for Tomorrow:

  • [UP] – 123-breakout or 2-Try breakout to buy
  • [DOWN] – seller failure to buy (or) 123-Reversal to sell
  • [SIDEWAYS] – sit on hands, wait to buy low.

Gold Futures (GC):

(Click on image to enlarge)

Gold Keys to Success:

  • As we had anticipated, sellers got short off range highs, completed their ‘pendulum swing’ on the opposite side and price has now snapped higher into the range.
  • Momentum is very bullish so buyers will be looking for ways to get in before we retest the highs overhead.
  • Sellers should be careful trying to short into this strong bull momentum
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