Ready For ‘Reaction’ Thursday? (FOMC Strategy)
Video Length: 00:50:43
We survived the FOMC Announcement this afternoon, and now we shift our focus to one of the most exciting days of the month, ‘Reaction Thursday’…
That’s right – the day after FOMC is usually a day filled with plenty of price-action setups, so I want to make sure you know where to find the best entries and targets to capitalize on the action…
E-Mini S&P (ES):
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E-Mini Keys to Success:
- Range Market = Failures, Rotation & Breakouts
- Bullish into a range and possibly spike and channel.
- Buyers have control and will be looking for buying opportunities at support levels below the range, along with breakouts on strength above the range tomorrow morning.
- Sellers need to be patient but will be looking for selling opportunities if the price begins to accelerate as it rotates off the highs.
Top 3 Trades for Tomorrow:
- UP – buy the 123-breakout (or) sell the 2try Reversal
- DOWN – buy the seller failure (or) sell the 123-reversal
- SIDEWAYS – sit on hands and avoid the middle of the range.
E-Mini Nasdaq (NQ):
(Click on image to enlarge)
Nasdaq Keys to Success:
- Range Market = Failures, Rotation & Breakouts
- Bullish into a range, but unlike the Emini, lower-highs and a failed pendulum-swing rotation signal that sellers are stronger than we might first assume.
- Buyers have control of momentum, and they’ll be looking for buying opportunities at support levels below the range, as well as breakouts to new highs.
- Sellers do appear to have their hooks in this, but they need to wait for a strong move lower, or a bounce reversal off the highs to get short with confidence.
Top 3 Trades for Tomorrow:
- UP – buy the 2-Try breakout (or) sell the reversal off highs
- DOWN – buy the seller failure (or) sell the 123-Reversal
- SIDEWAYS – avoid the middle and wait for a breakout
Gold Futures (GC):
(Click on image to enlarge)
Gold Keys to Success:
- Range Market = Failures, Rotation & Breakouts
- A failed pendulum-swing combined with a strong spike higher gives buyers the edge for a possible breakout of this week’s range tomorrow morning, but with this triangle high holding well, it would be wise to keep our eyes on short
Top 3 Trades for Tomorrow:
- UP – buy the 123-breakout (or) sell the buyer failure
- DOWN – buy the seller failure (or) sell the buyer failure
- SIDEWAYS – wait for new range to form, then buy low, sell high.
Disclosure: This material has been distributed for informational purposes only. It is the opinion of the author and should not be considered as investment advice or a recommendation of any ...
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