DIA trade ideas
DIA broke out of 100 days high last weekDow Jones AMEX:DIA DJ:DJI broke out of 100 days high last week. Perhaps a pullback next week.
CHINA RED FLAG TO world marketschina has entered bear market
not a good sign
apple is china,. boeing is china, lots of dow jones 30 are china,
nflx crap only hope is china
plus china is holder so f 1 trillion us debt, can offset in times of trouble
Be very cautious when listening to the Financial Media.I really can't stand most of the financial news media. They are seriously like a pack of lemmings just following each other around mindlessly. Personally, I think that CNBC has probably lost more money for people than Madoff and Ponzi combined.
Let me review the news of the past two weeks with regards to the so-called 'Trade War'. 'Markets fall on trade war fears', 'look how bad the market is acting because of the trade war', 'Markets roiled by trade wars', 'Trade Wars this, trade wars that, BLAH BLAH BLAH BLAH!!!...' The Fake News Financial Media wants us to believe that the world is coming to an end yet again.
But guess what? Since the President announced the $200 billion of trade tariffs against China on June 20th, the Dow Jones is down a total of -.58%. That's basically unchanged. Look at the action back in April and May. It looks much worse than the past two weeks have been. Do you even remember what was happening then?
The point is that probably 95% of the time market moves are not driven by news. The main things that cause markets to move are underlying trends, the levels of supply and demand that exists at certain price levels, and random noise.
Prices in markets are always doing one of three things. Going up, going own, or staying the same. When they are going up, the forces of demand are overpowering the forces of supply. When they are going down, the forces of supply are overpowering the forces of demand. When prices aren't moving the forces of supply and demand are equal. These trends are fractal in nature, meaning that there are trends within trends of varying time horizons.
And there are certain levels that are more important than others with regards to the amounts of supply and demand that exist at them. There are certain levels where there is so much supply that the forces of demand can't break through them. These are resistance levels. And there are certain levels where there is so much demand that the forces of supply cant break through them. These are support levels. Often times, trends stall or reverse when they reach these levels.
There is also movement that is caused by random noise. For example, say a client of Fidelity needs cash and they sell $200,000 worth of their mutual fund. Then the traders at Fidelity would need to sell a basket of securities that are in the fund to raise this money.
Now suppose that at the same time a different client deposits $100,000 into the same fund. Now the traders need to buy a basket of the same stocks that they are selling! This dynamic will cause these stocks to move and it has nothing to do with fundamentals or trade wars or what someone on CNBC is saying.
The trouble with the media is that when these dynamics occur, they always need to try find some sort of story that is driving it. The media is in the entertainment business and not legitimate journalism anymore. If the market happened to hit a support level and rebounded at the same time that the Trade War was announced, the media would be saying that the market is up because stocks will benefit from a Trade War!
If you hadn't looked at the markets and just listened to the news over the past two weeks, you would probably think that equity markets crashed. But in reality the Dow is only down -.58%. The lesson to be learned here is that you should have the confidence to shut the news off and think for yourself.
warning warning broke the 200 big time bearish if GDP not amazing we are going to have a big problem
$DJIA Another 1000 points drop comingLooks the weakest index. Next stop about 23K. If close above 24.5K then call negated.
DOW winterHas winter arrived in US equities?
DOW has touched 3 std dev from 52 W
RSI is highest in 30 yrs (quarterlies)
Swing trade for DIAFor people asking me about swing trades. When it gets over my enter line this would be a good entry for a swing trade. I like the bounce off the 200MA. I like the bounce off of most 200MA as long as it's below the 100MA. Remember to look at the long term moving averages and make sure the set up is 100MA is over the 200MA for most, not always but most times to get in off the 200MA indicator. TREND IS YOUR FIREND
buy diavery nice pullback from that huge drop, after 6 day decline we are looking to move up to the 251 area, so be ready to make money tomorrow!!!!!
#usbinaryopsignals
#futuresalerts
#waltervera
HOPE OR FEAR? Observation of Muni Bond etf $LEO vs $DIA DJIAHere's a big point... HOPE vs FEAR as shown by Municipal Bond Prices (using the Dreyfus Muni Bond Fund ETF $LEO)
Hope is the time when people are selling their "SUPER SAFE MUNI BONDS" to invest in stocks.
Fear is when people are buying SuperSafe Muni Bonds
It's a general-view, but worth attention.
If $LEO turns down, then look for the market to turn up for another leg-higher.
How to put this chart combination to work specifically is difficult, but you can at least see the waves of HOPE and FEAR (for growth in the economy).
The talk of tax cuts got the hope UP and then the realities of how difficult it is to make a change to the tax law put a halt to that hope.
Normally, I am watching the $SKEW index and $VIX to determine the general mood and it is showing good reason to be cautious here.
However, the amount of fear as shown by the price of $LEO moving up is giving me the idea we still have more upside in equities.
Call me a nervous bull. There are major rotations going on in sectors here with highly overbought and overowned internet-tech stocks at lofty heights of valuation and lowly valued, cheap stocks to own too.
What category do you put yourself in? And if you answer, what % of your portfolio is invested in equities?
Tim
9:49AM EST July 6, 2017
Dow Catch UpI like this short term AB=CD pattern to 257.85 which also happens to be the February high mark. Small Caps broke their highs last couple of weeks, then the tech sector joined, looking for Dow to be in catch up mode.
position: short dated ITM call options in $DIA
DIA analysisWait for price to rally to 259
Confirm IV <11%
buy 257 or 256 or 255 put with a min of 6 months expiration
no stop loss, risk is the entire premium
T1 240
T2 225
Dow Jones June 2018watch down trend resistance and support at 24 k
tariffs in play, keep eye out for GDP and job news - waiting for narrative change in market
$DIA - Putting a ring on it (Long)223% essentially (my) long-term target price. I'd expect 200% upside @ or around just short of $261 before potential re-trace. Definitely my favorite type of setup.
Market Bullish (For Now) -- Converging Triangle DevelopedAs you can observe in the chart, the Dow Jones price has bounced creating a new support curve. The resistance created by the past three peaks intersects with this support curve on July 6th. Until this day, I believe we can expect bullish behavior within the ascending triangle created by these two curves.
However, there are several other factors that obviously impact the market's flow so you always have to be ready to expect the unexpected.
DJ-30 Breaking down its Triangle formationDJ-30, has gapped down below the current triangular formation and is headed towards the bottom side of the rising channel. This potential setup has a Reward-to-risk ratio of about 2.5
Market BULLISH --- Breakthrough of ResistanceSince the peak of DIA back in early 2018, a very clear resistance curve has been formed with one solid redirection, and two nearby rejections. Things are finally looking good.
With this breakthrough, a new support curve has been developed which appears to remain very strong. However, the curve is extremely aggressive, so we can expect at some point soon a more passive curve to come into play. The curve drawn is a very short term support and you should not consider any downfalls through this curve too seriously.
Due to the breakthrough, this also means that market volatility should be continuing back down to its usual lows as the market is now in a bullish mentality. Leverages such as UVXY and TVIX will most likely continue to spiral downwards bringing great money for shorts.
