No One is Talking About this Triple Top, DOW

DJ:DJI   Dow Jones Industrial Average Index
Normally, I keep my trading and analyses to crypto, but this Dow Jones setup looks too good to ignore. Factoring in all of the bearish signs from fundamental analysis (rising interest rates, rising unemployment, slumping retail sales, and gov't shutdown), it's tough to argue that the stock market will break the previous high.

Triple top formation is possible. I'm playing a conservative short to the .382 fib retracement line for 6.4%. Setting my stop-loss right above the last swing high. Will start stacking my shorts as we near that 26700 resistance.

Entry: 26500
Exit: 24800
Stop-loss: 27000

Risk/Reward: 3
Trade active: So I quickly learned that it's not very easy to short DIA on Robinhood. So I'm using the Inverse index (SDOW). SDOW also puts a 3x multiplier on each daily move, which can't hurt given our confidence in this trade. Here's my SDOW setup, which I entered yesterday.

Comment: It's looking like this week is going to close significantly in the red. That's too negative weeks in a row after nothing but green weeks on this uptrend. The 200MA and 55EMA are both at about 251.5 on the Daily chart as of now. I'm expecting a small pullback to the upside at that point, so I'll book half of my profit and get back in on the correction.
Comment: The abovementioned pullback to the upside ended up going on for longer than I expected. Our triple-top setup is still valid and looking more valid each day as volume decreases and we near 270. I'm patiently waiting for a red day with strong volume, similar to what we saw in the November 2018 correction. If we get that, I'll short like no tomorrow.
I just noticed the same thing myself... Be careful with SDOW. 3 x is too much risk. Take a look at SH or SDS.
+1 Reply
eudotong1 richymag101
@richymag101, Thanks for the caution. Will likely aim for SDS, as the S&P can often be the most leading indicator out of the 3 major stock indices
+1 Reply
Thanks for sharing.
+1 Reply
eudotong1 alanmasters
@alanmasters, Still looking quite valid, eh?
@eudotong1, Yes! Great chart.
+1 Reply

Right there with ya buds.
+4 Reply
eudotong1 mc_peewee
@mc_peewee, Thoughts now?
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