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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

Best Setups for Tomorrow:

• (UP) – Bulls need traps or 123-breakout, bears need crown reversal
• (DOWN) – Bulls need seller failure or nested failure.  Bears need 123-breakout
• (SIDEWAYS) – sit on hands, wait for breakouts

(Click on image to enlarge)

Gold Keys to Success:

• Bears finish last week with strong run lower
• Sellers try to push lower to begin week but fail, price bounces higher
• Bears in control with a wide range, but beware bullish “rotation off the low”
• Wide Range says focus on the edges of the range with failure setups

Best Setups for Tomorrow:

• (UP) – Bulls need traps & 123-breakout.  Bears need nested failures
• (DOWN) – bears need traps & 123-breakout.  Bulls need crown reversals
• (SIDEWAYS) – sit on hands, wait for breakouts

(Click on image to enlarge)