Dow Jones Bearish Rectangle????Idea of a potential breakout on Dow Jones. Also taking into consideration the economical climate and NFP earlier today. Will the downtrend continue.
Dj30
ridethepig | Getting Itchy Fingers in US Equities...Getting our bearings...
If a retrace swing is checked in its advance only by opposing forces, waiting for sentiment to improve will mean you have missed out on a lot of the bounce. There is the recognition that when a crash like this happens, we must sacrifice a part of our own effectiveness just to help keep an eye on it, outguessing the lows is an advanced game, you will need to keep tracking continuously over the coming days/weeks.
When we remember another signpost, name that the 2s5s was screaming recession last year in that it is a born defender, we will gradually get to the point where selling exhausts in Equities and is worthy of our respect.
We need to ask ourselves...what is the best price to outguess an ambitious swing low? What is the most secure defence of our own portfolios? What is the cheapest stop cluster on the board to load into? e.g The lows at +/- 15,500 are once more open for a sweep, because new cycles are not suited to long-term populated ladder inactivities. This is much less the case when a swing is employed in such a chapter.
Let us now take a look at some of the underlying factors that are weighing heavy right now, firstly the " Consumer Staples " chart of the previous chapter. In this connection, I must first mention the majority. At the start of the turn the low hanging fruit was there to be taken, but after the 2008 crisis it was one way traffic.
As the game continues, Covid-19 is now marking the highs in this cycle, and then the majority of SMEs are under severe pressure against liquidity. Every day, uncompromised jobs are being lost with Jobless Claims exploding through the roof:
A rule which is dictated not only by strategic necessity but much deeper, as I am sure you will admit, by sheer "good manners". The rule can be described with scientific precision as follows:
=> The knee-jerk lows of the decline is the candidate we are considering, as there is support at 15,500 I will look to fade dips into this area and then play a swing towards 35,000.
With Oil on the $20 lows, sellers are looking to cripple Russia and Saudi. How simple! And yet, how often does one see weaker players advance the move, then comes the majority of retailers which is no value to us. We are approaching the final few chapters in the Oil decline too, the explanation is simple, they are undecided whether to start on the supply side cuts, so being unable to make up their minds (and killing US Shale in the meantime) markets do what all solid players do: they stick the knife in and cause maximum pain.
In this position, sellers have a passed swing, but it can be seen more clearly in Monthly:
This stopping is achieved by US placing one's focus on Gold and directly increasing the price of XAUUSD. But here, as in all other cases, the question arises: is Gold:Oil ratio (XAUUSD & XAUCNY | USOIL & CNYOIL contracts) not an unnecessary use of energy? Actually China managed to devalue the CNY right in-front of our eyes via Oil. The only way the US can now keep a healthy petrodollar market is by keeping a low gold:oil ratio which is either via low Gold and high Oil or High Gold and low Oil, you get the point.
Two options are in play right now... either widespread defaults or I am glad to offer you what I believe is an exhaustive solution to the problem I have raised and inflate assets away. Nominal GDP will need to grow and your mediocre critic would sum up the problem in a short comment: write off student debts, or more helicopter money. But to my mind this betrays a poverty of thought! The why and wherefore are extraordinarily important. It would be ridiculous to write a piece here without a psychological element. In my books, its just as ridiculous to write a manual about swing strategy without immersing oneself in the innermost being of the participating drivers of flows.
No matter how unusual the following scenario may seem, I can only insist on the fact that models show confidence collapsing in public assets which will trigger inflows towards private sector in the coming years. They too have desires that slumber unrecognised within them, and fears of which they are scarcely aware. But quite removed from that, a detailed case for the need to outguess the turn is more practical use than those who seek theory. Of course, I do not consider the presence of a practical plan as an extenuating development, for what have I do do with extenuating developments!!
Take care everyone and thanks for keeping the support coming with likes, comments, charts and etc!
DJ30 going down. Perfectly bounced to Fibbo 38.3 and got rejecteDJ30 going down. Perfectly bounced to Fibbo 38.3 and got rejected.
Looks like a good short opportunity
Shorting SPX500 or Dow JonesWe can sell US futuers, SPX500, DOW JONES or NASDAQ100 if we see a pull back to the.(We can expect a pull back in the coming days.)
US30 / Dow Jones Buy for New York & TrumpIm expecting the US30 / DJ30 / Dow Jones to head higher today and maybe even this week.
I believe a strong reversal could be due based on what the charts are showing me right now.
Trump is due to speak today and that could create aggressive market movement but also the massive cash injections by the FED could help support the upside movement!
DOW GOING TO 30K OR BACK TO 27K ?US30 price is in a wedge pattern but it's not yet enough conirmation to sell it. So,we will wait for more conformations. Please give a follow to get the updates on time :)
In H4, we will wait for an impulsive move to the downside and trade the pullback.
H4 :
Traders! if you like my ideas and do take the same trade, please write it in comment so we can manage the trade together.
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Disclaimer : The content on this analysis is subject to change at any time without notice, and is provided for the sole purpose of assisting traders to make independent investment decisions.
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Thank you for your support!
DOW JONES NOT REVERSING YET: WEEKLYThe Dow Jones Industrial Average is still looking like a strong bull on the weekly timeframe. The candles have not yet formed a reversal pattern, there is still potential for the upside after breaking the previous top. On a weekly candle once a pin bar formation of a strong reversal Doji forms then we can talk about the potential downside. For now, the target is still the top of the channel at 28650-28700.
There is a potential for a slight retrace but price should not get much below 27300 on a long-term perspective. That will ensure structure holds well bullish. Each failure off the top of the channel was followed by a 6.60% retrace, for that to occur price has to move up to the top of the channel, IF there is a 6+% retrace, the channel and bull structure is broken and the move lower can price the Dow Jones into correction territory.
The limit of DJI will be toAfter a decade of gold, the U.S. stock market will face another big bear market.
If the DJI does not continue to rise in the next six months, then macd will produce a top divergence, which will be the 6th top divergence in the history of the DJI, in the previous five times, three times more than -20%, two times stagflation, so don't look down on the pressure of top divergence. And I believe that this time, if a top divergence is formed, it could be a long bear market, with adjustments likely to take more than a year.
And for the Dow's target forecast, there are now two clear highs, 29600 and 34400, the target bits formed by the two golden divider lines, which, if superimposed on top divergence, could be the ultimate top of the Dow Jones index.
On the contrary, China's A-shares, after four years of bear market, in the securities market continued to "de-leverage", the risk has been reduced a lot, the market is now attracting numerous external capital inflows, including by Trump "screaming" the United States "pension pension" are eager to run into the market, indicating that A-shares are currently cost-effective, It's hard for anyone to refuse.
With China's economy facing its worst situation in 30 years, why do people value A-shares so much?
I think on the one hand is the world's second largest economy, its own vitality is tenacious, so that we all believe that China can avoid Japan and Germany's problems. Globally, is there a safer investment market than China after capital leaves the United States? I'm afraid the answer is no. In the case of economic downturn, light assets are actually very good investment targets, which in Japan after the "square agreement", has also been confirmed.
So it's important for me to remind you that it's time to focus on A-shares.
Strategy: gradually withdraw from the U.S. stock market, the investment target to China's A-share market, 5g is the infrastructure of the Internet of Things, is the cornerstone of China's science and technology decade, but also the first to benefit from the sector, and China's social transformation, manufacturing technology upgrading, asset securitization is the foundation, so the big financial sector also has a bull market foundation, In the future there will be Morgan Stanley in China, Apple and Google.
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.
Dow Jones - A good old rodeo never hurt anyone.Hi, today we are going to talk about Dow Jones and its current landscape.
At Dow Jones, we have a test from the broken Uptrend, so the Bears are going to build up positions in this zone with massive financial volume, creating intense downside pressure on the price. Since the breaking of this Uptrend, it's crucial for the maintenance of the bearish movement. Remember that the asset still moving sideways, for now. So this attempt to retake the Uptrend could be only random, just a Bull Trap.
Thank you for reading and leave your comments if you like.
US30 - Momentum stalling reversal?OANDA:US30USD
Trade Idea
DOW30 - Intraday - We look to Sell a break of 27325 (stop at 27425)
Price action resulted in a new all-time high at 27403. Momentum is stalling with the posting of new highs and indicates bearish divergence. Prices have reacted from 27400. The overnight rally has been sold into and there is scope for further bearish pressure going into this morning. With our medium term bias looking to buy dips and the short term bias indicating selling interest we are faced with mixed signals. This has resulted in mixed signals and we prefer to trade a break.
Our profit targets will be 27125 and 27000
Resistance: 27403 / 27475 / 27541
Support: 27336 / 27200 / 27125
Situation DJI at end of 7.3.2019 SHORTAt end of trading day 7.3.2019 there is now really news to tell. We have
established now a new short downtrend channel
i have marked in purple to have a road for the next days.
There is also as you can see a trend resistance channel with
a deeper fall, i have marked with orange resistance line.
I think in 1 of these channels we will se DJI tomorrow
and than we check situation again.
There is a added resistance zone also marked in orange now at 25560 we have to check to see
a first sign of end of short.
(Whether DJI climbs above that)
But even IF, that only a sign, that NOT a new long signal.