Dow Jones - Complex Correction Sequence Complete - SELLDIA remains a STRONG SELL
Analysis Method: Fibonacci & Wave Theory
See related idea for past analysis.
A complex correction has completed. The largest 30 companies are facing serious headwinds. I will keep this idea updated with relevant information.
Here is a brief...
GE - Massive Liabilities
Apple - Massive Privacy Concern/Social Concerns
BA - Embroiled in China/737 MAX
CAT - Tariff/Slowing Global Growth
KO - CEO shake-up
DOW - CEO Shake-up
IBM - CFO Shake-up
Intel - CEO Shake up
JNJ - Mislead Consumer about product saftey
JPM - Blockchain
Merck - CEO Shake-up
Microsoft - Blockchain/Privacy
Nike - CEO Shake up
Pfizer - CEO Shake up
Travelers - Blockchain
Visa - CEO Shake up
Wal-Mart - Earnings?
Disney - Iger? Earnings?
;)
Will update.
Cheers.
DIA trade ideas
Dow MFI OverboughtBoth the Dow index and ETF are overbought on MFI, usually indication that it will dip.
The weird thing is that it usually goes higher after the dip, setting up for overbought RSI with MFI divergence. That goes against my theory that the market is going to tank on the Fed announcement. This chart implies that the Fed will cut rates.... hmmm.
SHorting NKE, but not DJI or DIA.
Historical Analysis of the DIAHistorical Analysis and Monthly Chart :
The DIA showing Strong Major Bull Trednd with serveral interaction with the Return Line (RL).
Note the Pick in Momentum since February 2016 (or B3), the next Major bottom made above the Major Trend Line (MUT), and therfore showing the failure of the Bears to take the price downward.
But, we dont see strong sign of buyers either.
The DIA is inside big Consolidation that lasted for almost 2 years (since Oct 17).
Weekly Chart :
The Resistance Area between 265.88 - 267.53 Established in Jan 2018, the second attempt to go above that level accured 1 year ago (Sep 2018) and the reaction was very violent and took the price to far down levels.
Since then the price hit the Resistance Area 3 Times :
1) April 2019 - the price got into resistance reaction and made New High Bottom.
2) June 2019 - the price go through the Resistance Area, Failed to continue, and made new higher bottom bellow that level.
3) September 2019 (these days) - the price close above the area last week, but with relatively low volume.
We need to keep an eye on the price this week and look for the power of the buyers, how far they can take the price up (if any).
Notice also the Volume Activity in the Consolidation Area - Pickup on down moves, and diminsh on the Rallies - weakness .
Daily Chart :
The Daily chart does not give us alot of new information.
But we can see the Trading Zone (sort of Rectangle), and the price movement above it.
The Minor picture is Bullish.
Conclusion :
Since B4, the overall picture looks positive.
But the Key for understanding the coming moves relly on the reaction to the Resistance Area, and the examination of the Bulls Power.
Any High Volume Bullish Activity above the Resistance Area, can take us again to the Return Line (RL).
If we will see Second Failure on the Resistance Zone,we need to examine the power of the Beats, and the next areas to look for are the bottom of the trading zone, and B4.1.
If the Bears will act Aggresivley and take the price bellow B4.1, the picture is very negative and the next level is the MUT.
DIA to move Lower (Gap Fill)DIA spinning top with downside gaps to fill. Lower volume all bearish signs. Expect a gap fill to at least the first gap but possibly the second gap shown by horizontal lines. Place stop above top of spinning top depending on position size I would allow 60 points above for 400 plus points move down. 7 x risk reward.
Daily DIA stock forecast analysis. 15-Aug
Investing strategies by pretiming analysis
Recommended Positions : Short-Bearish
Price target within 10 days from today : 239.95 ~ 244.19
Investing section : In Rising section of high profit & low risk so far. But it would be in falling section tomorrow
Supply-Demand(S&D) strength Trend : In the midst of an adjustment trend of downward direction box pattern price flow marked by limited rises and downward fluctuations.
Today's Supply-Demand(S&D) strength Flow : Supply-Demand strength has changed to a strengthening buying flow when stock market opening.
Forecast Candlestick Color at tomorrow : RED Candlestick
Forecast candlestick chart of 10 days in the future : www.pretiming.com
Forecast Range % D+1: 0.15% (HIGH) ~ -1.08% (LOW), -0.39% (CLOSE)
%Average in case of rising: 0.70% (HIGH) ~ -0.17% (LOW), 0.54% (CLOSE)
%Average in case of falling: 0.09% (HIGH) ~ -0.79% (LOW), -0.43% (CLOSE)
Daily DIA stock price trend forecast analysis. 02-Aug
Investing strategies by pretiming analysis
Forecast candlestick chart of 10 days in the future: www.pretiming.com
Investing position: In Falling section of high risk & low profit
Supply-Demand(S&D) strength Trend: In the midst of a downward trend of strong downward momentum price flow marked by temporary rises and strong falls.
Today's Supply-Demand(S&D) strength Flow: Supply-Demand(S&D) strength flow appropriate to the current trend.
Forecast D+1 Candlestick Color : RED Candlestick
%D+1 Range forecast: 0.3% (HIGH) ~ -0.6% (LOW), -0.2% (CLOSE)
%AVG in case of rising: 0.7% (HIGH) ~ -0.2% (LOW), 0.5% (CLOSE)
%AVG in case of falling: 0.2% (HIGH) ~ -0.9% (LOW), -0.6% (CLOSE)
Using the Cashflow Indicator, a downtrend has begun...The cashflow indicator is a measure in change in price multiplied by volume. I believe this shows current interest in changing price. The indicator shows current cashflow and average cashflow. The average cashflow looks like a pool of blood in a downtrend. Each current cashflow value is like a dagger stabbing a cash filled balloon. If you see a blood filled cashflow average this means a lot of selling volume. Basically GTFO!!!!
Daily DIA stock price trend forecasts analysis.12-JUL
Investing position: In Rising section of high profit & low risk
S&D strength Trend: In the midst of an upward trend of strong upward momentum price flow marked by the temporary falls and strong rises.
Today's S&D strength Flow: Supply-Demand(S&D) strength flow appropriate to the current trend.
read more: www.pretiming.com
Forecast D+1 Candlestick Color : GREEN Candlestick
%D+1 Range forecast: 0.2% (HIGH) ~ -0.2% (LOW), 0.1% (CLOSE)
%AVG in case of rising: 0.7% (HIGH) ~ -0.2% (LOW), 0.6% (CLOSE)
%AVG in case of falling: 0.2% (HIGH) ~ -0.7% (LOW), -0.3% (CLOSE)