No One is Talking About this Triple Top, DOW
Updated
Normally, I keep my trading and analyses to crypto, but this Dow Jones setup looks too good to ignore. Factoring in all of the bearish signs from fundamental analysis (rising interest rates, rising unemployment, slumping retail sales, and gov't shutdown), it's tough to argue that the stock market will break the previous high.
Triple top formation is possible. I'm playing a conservative short to the .382 fib retracement line for 6.4%. Setting my stop-loss right above the last swing high. Will start stacking my shorts as we near that 26700 resistance.
Entry: 26500
Exit: 24800
Stop-loss: 27000
Risk/Reward: 3
Triple top formation is possible. I'm playing a conservative short to the .382 fib retracement line for 6.4%. Setting my stop-loss right above the last swing high. Will start stacking my shorts as we near that 26700 resistance.
Entry: 26500
Exit: 24800
Stop-loss: 27000
Risk/Reward: 3
Trade active
So I quickly learned that it's not very easy to short DIA on Robinhood. So I'm using the Inverse index (SDOW). SDOW also puts a 3x multiplier on each daily move, which can't hurt given our confidence in this trade. Here's my SDOW setup, which I entered yesterday.
Note
It's looking like this week is going to close significantly in the red. That's too negative weeks in a row after nothing but green weeks on this uptrend. The 200MA and 55EMA are both at about 251.5 on the Daily chart as of now. I'm expecting a small pullback to the upside at that point, so I'll book half of my profit and get back in on the correction.Note
The abovementioned pullback to the upside ended up going on for longer than I expected. Our triple-top setup is still valid and looking more valid each day as volume decreases and we near 270. I'm patiently waiting for a red day with strong volume, similar to what we saw in the November 2018 correction. If we get that, I'll short like no tomorrow.Trade closed: target reached
Original target of 24800 has been reached. I've taken out about two-thirds of my profits. Will be looking to get more money back in my short during the retest of local resistance. I think we go further down as the summer progresses.
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