The Dow's run to 265 offers a great opportunity for fast cash
After breaking the symmetrical triangle last Friday, the DJIA's run to 26500 looks likely.
I expect a very good next two week; starting with a price target this week of 26000, and 26500 next week. It is fair to say that the Dow could face a lot of pressure from its January high. Therefore I believe that the price will be dancing between 265-266 for a week before a break-out occurs, and then, I think that a consolidation will follow.
I will be trading it this way:
1. I will buy DIA Calls with a Mar 16 Exp and sell them when the index reach 26500;
2. I will wait for a drop to hopefully 26000 before re-entering the trade but this time with a Apr 20 Exp. My target for this one will be 27000. I will wait a bit after that to see where the market is heading.
Good trading everyone!
I expect a very good next two week; starting with a price target this week of 26000, and 26500 next week. It is fair to say that the Dow could face a lot of pressure from its January high. Therefore I believe that the price will be dancing between 265-266 for a week before a break-out occurs, and then, I think that a consolidation will follow.
I will be trading it this way:
1. I will buy DIA Calls with a Mar 16 Exp and sell them when the index reach 26500;
2. I will wait for a drop to hopefully 26000 before re-entering the trade but this time with a Apr 20 Exp. My target for this one will be 27000. I will wait a bit after that to see where the market is heading.
Good trading everyone!
Comment:
Quick Update—
Everything is going as planned.
Today: I took some money out after the market showed weakness at 27500. I will re-enter at round number support of 255;
Wednesday 28 Feb: A big day, DJI should reach 25900 (+350!);
Thursday 01 Mar: I should reach my goal for the week at 26000. However, it shouldn’t last; I expect to take some profits and re-enter the VXX trade;
Friday 02 Mar: We should see a significant drop, the DJI testing the support at 25500 again. It’s gonna be time to re-enter the trade while testing this support, because the momentum is still looking good. (Next week goal 26500)
Note: if I see a full candle breaking the bottom line of the channel, I will sell and reposition short.
Quick Update—
Everything is going as planned.
Today: I took some money out after the market showed weakness at 27500. I will re-enter at round number support of 255;
Wednesday 28 Feb: A big day, DJI should reach 25900 (+350!);
Thursday 01 Mar: I should reach my goal for the week at 26000. However, it shouldn’t last; I expect to take some profits and re-enter the VXX trade;
Friday 02 Mar: We should see a significant drop, the DJI testing the support at 25500 again. It’s gonna be time to re-enter the trade while testing this support, because the momentum is still looking good. (Next week goal 26500)
Note: if I see a full candle breaking the bottom line of the channel, I will sell and reposition short.
Comment:
Oh my!
The 3 main index stopped on their support; are they going to hold? We gonna see that tommorow. I hope yes, because I think that the Dow is a bit low to fall back again, however QQQ is leading the race to the breakout and it was unable to break January high forming at the same time a double top. Doesn't look good...
Trade safely!
The 3 main index stopped on their support; are they going to hold? We gonna see that tommorow. I hope yes, because I think that the Dow is a bit low to fall back again, however QQQ is leading the race to the breakout and it was unable to break January high forming at the same time a double top. Doesn't look good...
Trade safely!
Trade closed: stop reached:
Short!
Have a nice day!