DOW JONES Head and Shoulder formationAMEX:DIA
The Dow jones DIA is at a critical point right now. We are at the 50d Avg and the support of a head and shoulder breakline. Both SPY and QQQ are going to end the week triggering a weekly MACD sell signal. And cyclicals are not on our side (mid of septamber till mid of october been the wors months)
DIA trade ideas
Head and Shoulders formed in DIAHead and Shoulders pattern created in DIA chart on September 17th. Downward baseline/trendline formed between the 17th and the 30th of July. Idea is that the market drop from the Head and Shoulders pattern must break down through this trend line (minimum drop level) before a bottom forms from this play. Short Call.
The bearish div on the DIA Monthly might be my favoritefor a monthly, its just incredible
this has been such a personal growth journey in understanding how herd mentality and consensus drives humans to participate in patterns--despite the clarity.
hard game this one is.
the hard part is keeping anything.
Cup and Handle No Rising WedgesThe C&H pattern is Slow in forming but is forming NO Rising Wedges noted
The prior gap down may cause Hard R above price
QQQ, SPY and IWM are all traveling in a rising wedge.
Narrowing Rising wedges can be long term patterns and can travel up in them for a long time. Just be aware of the bottom trend line.
Rising wedges slope upward and contract at the apex.
Falling wedges at the bottom are often bullish and can signal a reversal from a downtrend. Examples, CBOE, CME, HSY
Not a recommendation
RV StocksI'm looking for a group of stocks to run with, as the stock market no longer makes any sense, I thining the RV market will benefit from this pandemic. I myself was planning an RV trip and before I pulled the trigger prices for rental at Cruise America mooned (lol a little crypto joke).
What do you guys think