Which Open Loop Closes First? Bulls Or Bears?


Video Length: 00:51:38

We’re back to our desks for the second week of January, and with lots of stimulus talk on the news feeds, combined with those big open-loop moves we saw last Friday, there is a ton of opportunity baked-into these markets this week…

The Emini has a pair of open-loops both above and below last week’s trading-range, which means both buyers and sellers should see great opportunities around the edges of the range…

Gold may be bearish in the long-term, but this morning’s “rotation off the low” is a massive clue for the bulls going into Tuesday, and Crude Oil still has the open-loop left wide open from last Friday’s remarkable run higher…

My biggest question is – who’s open-loop will get closed first? 

E-Mini Keys to Success:

  • Weekend GAP leaves magnet back at all-time highs
  • Bears run lower, back into range, expect pendulum swing lower, open-loop waiting
  • If buyers run higher, target retest all-time highs with bear traps
  • If sellers run lower, expect retest of lows, buyers looking for nested failures to get long, sellers waiting for proof of bear 123-breakout lower

Best Setups for Tomorrow:

  • (UP) – Bulls Need Traps or 123-breakout, Bears Need Crown reversal
  • (DOWN) – bears need traps, bulls need nested failures
  • (SIDEWAYS) – sit on hands, wait for breakouts

(Click on image to enlarge)

Crude Oil Keys to Success:

  • Buyers Finished last week with strong spike higher, retest is likely this week
  • Sellers got strong start running lower, and got their retest of the low
  • Sellers took profit and price explodes higher, confirming buyers have control
  • Price sits in the middle of the range with bulls in control
  • Buyers will avoid buying higher unless something changes, such as OPEC news
  • Sellers will sell high, but will be foolish to sell near today’s lows
  • Watch a trading-range develop in the middle for tomorrow
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