The S&P 500 Index has been a bit hard to read for beginners as the charts are giving bearish signals yet it continued to move up and break above certain strong resistance levels. As for The Dow Jones Industrial Average Index (DJI), this one is telling us a different story, this chart is much easier to read.
When you look at the chart, you can clearly see lower...
After a tumultuous few months on the Dow, four straight winning weeks might suggest it's time to start running with the bulls again, however my opinion would be to stay sat on the sidelines until all the bear traps have been completely removed.
For sure, there's been a significan push from a low of 21712 up to the recent close of 24706. But the DJIA has now run...
5 min head and shoulders pattern forming.
1 hour trend is down.
The DXY is gaining strength up over 0.42% on the day (30/11/18) 17.42pm GMT.
Looking to hit Thursday's Low.
The idea is that you wait until it is expensive enough to sell, (sell into strength. Buy into weakness)
I have moved my stops on both the DXY and DJI trades. DXY in profit and some profit...
You know as they used to say in the old days: "Follow the stars!". Should we do the same and follow a traditional idea when we see a Shooting Star formation?
This is a difficult one. Especially for me, as I have to admit, I have been wrong on my Dow analysis in the past.
But, if I am right this time, then I am aiming for 24000 level. Also, maybe this time the...
Has the time finally come? Are we going to see a bit of retracement?
Aiming for 23000 at least.
It would be healthy for this crazy index to retrace a bit before the Christmas rally (if we'll see such this year).
Entry - now
SL - 23460
TP1 - 23000
TP2 - 22750
Keep an eye on the price action!
The Dow / Gold Ratio is setting up in a very similar way to its previous drop. Meaning either Gold will rally with the Dow entering a bear market or that Gold will rise or fall with the dow at a greater or lesser rate respectively. 9 times out of 10 its the first scenario that is true.
Might be a very good time to sell the Dow / Stocks and buy gold and gold miners.
This doesn't happen very often, but it seems that it wants to form a Bearish Tri-Star formation. I might be wrong, but sure looks like that.
In theory, this would be ideal for that. Today is Thursday, the Dow could close with another tight range and then tomorrow, sell off during the NFPs. Great scenario. Works out perfectly... in my head...
I recommend to stay...
This trade is only for today.
Observe the 4h candle. Observe the close of it. This could potentially work out.
If it will close above the upper trend line, then look for some upwards movement continuation. But I am leaning more for a quick SHORT to about 21475 level, if the 4h candle will stay below the upper trend line.
At the moment, it's balancing at around...
I used to trade DJIA a lot in the past, but I have moved away from it, as it can be very tricky and quickly take you out. I like the idea of it LONG in long-run, but in the short-term, I would like to see a bit more selling, in order for it to become even more attractive for the bulls.
We are forming this wedge-type formation, which I think should be broken soon...