11 Trade Ideas Predicting The DJI Crash | Where Is The Bottom?

Updated
The Dow Jones Industrial Averages index has been holding much, much better compared to the S&P 500 and Nasdaq indexes.

While the other two indexes have been down considerably since we started to predict the crash (18% SPX & 25% NDX), the Dow Jones (DJI) has gone down only by 12%.

This is the last one of this series of articles.

Feel free to relax as we get started!

Thanks a lot for your support.
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Let's start with the chart above on the Monthly timeframe.
The DJI closed last month below EMA10 and it is now signaling lower.

We use EMA10 to gauge the short-term potential of a cryptocurrency trading pair, stock or chart.
So the short-term potential has gone bearish... This we normally say based on the daily (24 hours per candle) timeframe.

Since this is the monthly, each candle is ~30X stronger than the daily.
Which means that this very simple signal can yet be very strong.
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We started in late January to look at the Dow Jones.
We don't need/use 100 indicators, the very simple moving averages for us are more than enough.

Here we saw that the Dow Jones is no exception, it was also set to drop!

(Jan. 24) The Dow Jones Industrial Average Is No Exception (Crash)
The Dow Jones Industrial Average Is No Exception (Crash)


Two days later we looked at the famous 'Falling Wedge" pattern and compared it to 2020-2018...
This one on the monthly timeframe.

(Jan. 26) Dow Jones Industrial Average Monthly Chart Analysis (30%+ Crash)
Dow Jones Industrial Average Monthly Chart Analysis (30%+ Crash)


We can appreciate how the DJI was looking better than the SPX and NDX...
Yet, the indicators, such as the MACD, gave it away!

(Jan. 28) The Dow Jones Industrial Average: Not All Red
The Dow Jones Industrial Average: Not All Red


Dead cat bounce, anyone?
Easy to tell... We stay conservative though to not scare you away.

How to prevent a crash if the Feds policy do not change?
A: Impossible

(Feb. 7) DJI Weak Bounce
DJI Weak Bounce


And here too for the initial phases of the correction we look at the classic ABC.

(Feb. 11) DJI Crash Last Reminder
DJI Crash Last Reminder


To me, the next one was the biggest give away of all.
The long-term cycles are very strong but what to say when an index loses a 20 years long support?
We are talking about the MACD on this one...

(Feb. 14) DJI And The 20 Year MACD Support
DJI And The 20 Year MACD Support


We step back to sum it all up...
It is possible that the DJI goes for a 50% or more drop... Who knows, let's ask the chart!

(Mar. 4) DJI | Dow Jones Industrial Average (Additional 55% Drop)
DJI | Dow Jones Industrial Average (Additional 55% Drop)


By mid-March we shared the "bear-run"!
This is happening across all markets and will continue a bit longer before we see sustained/long-term growth.

(Mar. 13) DJI Bear Run
DJI Bear Run


This is all for the major US Indexes.

We will go back to Bitcoin soon and then focus 100% on the Altcoins which is where the money grows.
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In all, we published:
  • (1) 26 trade ideas for the SPX (all bearish).
  • (2) 14 trade ideas for the NDX (all bearish).
  • (3) 11 trade ideas for the DJI (all bearish).


For Bitcoin (BTCUSD), we share the Macro/Long-Term view as well as the short-term bounces/moves when prices go up.

You can count on us being here by the time the bottom is reached and when we hit $300,000 or more in 2025 and beyond.

Namaste.
Note
After we hit bottom... The only place left to go is up!
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