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):

(Click on image to enlarge)

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
1 2
View single page >> |

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 ...

more
How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.