Now that the DJIA has rallied 250 points today to 18000, it sets up a trade to go short right against this cluster of where all of the companies reported their earnings during April-May, as shown. Notice what happened in the past two cycles when stock prices later pulled back to the support zone provided from the earnings-reporting-season; stock prices keyed off of that mid-point and moved back to the highs.
I am placing a risk of 200 points for the main reason that it is far enough away from the current price and it is above the price cluster of days around 18050-18100 where the recent slide started from.
Tim 18017.92 last +253.88 (This INDU does not update during the day, so use another symbol to track)
Comments
IvanLabrie
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Beast trade Tim!
timwest
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SPOT ON! Key Earnings Level - DJIA - KEY to the top of this market....
IvanLabrie
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Time to go down...
timwest
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BULLSEYE to the penny
The_Cannalyst
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thanks for sharing this nice Analysis
r.d.b.solutionz
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ty was waiting for this move
timwest
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18101 is the "KEY EARNINGS LEVEL" - or the "weighted average price of all of the DJIA stocks earnings levels" - The DJIA rallied right to it ....
IvanLabrie
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Definitely a significant level it would seem. Similar to making an index chart or a ratio, but instead, the average of all earning s/r levels. Really clever thinking Tim.
timwest
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It literally went to it and topped.... very low risk entry on the short side. 100 points risk, so far 220+ points to the good.
CoolCreekCTA
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I have similar signal that S&P is at mid-term top of 2104-2109. Will not short during today's session, have not seem mid-day reversal off highs for many months. Will sell after close or tonight. I expect reversal of today's gain before close on Friday.
Good luck to us all.