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!
Note
So far so good. I think we have reached the top for today (+350). Hopefully we can see a drop to 255 so that I can increase my position. I believe that the volatility will rise so I bought a couple VXX calls that will sell once we reach 255. A good way of edging without downsizing your core position.Have a nice day!
Note
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.
Note
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!
Trade closed: stop reached
Short!
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.