Dow Jones Industrial Average relative strength on the riseThe overall US equity market is still having a hard time stabilizing and catching its footing, however, if we examine the major US indices closer we do notice more and more relative strength coming out of the Dow Jones Industrial Average.
This past week it never took out its September lows, the MACD momentum oscillator continues to climb aggressively, and on Friday we remained in the top 1/3 of Thursday's bullish engulfing bar.
I started a position on Thursday and will keep a tight leash risk managing it going forward. More notes on the chart.
DIA trade ideas
Another Crooked M 1.414//Economic Reports Remaining this WeekWide Channel Down/Marubozu Candle with both ends shaven//Price sits above the .382 of the trend up/No recent pocket pivots noted.
No recommendation
WEDNESDAY, OCT. 12
8:30 am Producer price index, final demand Sept. -- -0.1%
2 pm FOMC minutes
THURSDAY, OCT. 13
8:30 am Consumer price index Sept. -- 0.1%
8:30 am Core CPI Sept. -- 0.6%
8:30 am Core CPI (three-month SAAR) Sept. -- 6.5%
8:30 am CPI (year-on-year) Sept. -- 8.3%
8:30 am Core CPI (year-on-year) Sept. -- 6.3%
8:30 am Initial jobless claims Oct. 8 -- N/A
8:30 am Continuing jobless claims Oct. 1 -- N/A
FRIDAY, OCT. 14
8:30 am Retail sales Sept. -- 0.3%
8:30 am Retail sales ex-motor vehicles Sept. -- -0.3%
8:30 am Import price index Sept. -- -1.0%
10 am UMich consumer sentiment index (early) Oct. -- 58.6
10 am UMich 5-year inflation expectations Oct. -- 2.7%
10 am Business inventories Aug. -- 0.9%
DIA Short 22/08/22Asset and Time frame - DIA, Weekly
Entry Price - 330.50
Exit(Stop Loss) -343.69
Exit(Take Profit) - 292.56
Technical Analysis - Price has reached a confluence area, we've got a resistance line of 330.50, we have the 100 Weekly moving average, we have a hammer formation on the weekly chart but without confirmation, and we've got a failed breakout from the down-trending channel.
The market is very uncertain at the moment, a smaller position of 0.75% seems about right for me.
Wishing us the best of luck!
DIA SPY QQQ OversoldOversold and below the bands.
This status can continue for extended amounts of time, but usually not forever.
DIA has just fallen below the .382 of the trend up from the Covid low.
This market will not go straight down just as it did not go straight up.
No recommendation.
The Big Dippers (the buy the dip folks) will come in again eventually. Maybe not tomorrow or the next day. But they will.
I will worry about that tomorrow.
QQQ and SPY are not "as" oversold as DIA. Not sure if that counts for anything
Short for the longer term/possible bounce.
New Low and Major Downtrend (DIA)- 370 was the top of the 13-year bull market
- The troubling sign appeared when breaking down the neckline 340 after the head-and-shoudler patten
- Failed to retest 340 on August 15 formed a reversal pattern that is the final warning for a big trouble
- Due to a lack of support down below except 267 (weak support), the major downtrend could reset DIA back to 183, its second support
- It means -50% down for DIA and a total wipe-out of all gains since 2020
Cup and handle forming on inverted DIA I just was just browsing through and inverted the DIA and started playing with some patterns. I feel like I've noticed multiple triple tops and inverted cup and handles. This could be dangerous for the short term future and possibly the next 2 -4 years. This is just one of many making this type pattern being that a lot of stocks follow the Dow Jones