SELL SHORT GOING UNDER 184. 187 stop initially. 174, 171, 168, 167, 166 TARGETS
IT COULD BE A FAST DECLINE TOO. (excuse the typo in the chart, I rushed)
Pay close attention as this is a key support level we are toying with here at 184.
If we slip under 184 it could trigger stops like you haven't seen before.
I think the support levels mentioned will only stall the market for a little bit while it works its way down to the lows from last October under 166.
Tim 4:20PM EST 4/7/2014 184.34 last
Comments
traderCarl
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Could you please the next size larger font when making notes on your charts?... thanks
ZigaZaga
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I have only been closely following the Dow. Your SPY is obviously similar...
Right now watching the futures market. They may both just recover and creep up a bit - then just a case of timing - when to sell that healf-hearted rally.
timwest
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I like to watch everything to see how everything is moving relative to everything. The markets are an orchestra and they all move together to make music together. When one gets out of synch with the others or gets out of tune, it is easier to tell when viewed as a group. Price action, sentiment, relative movement to itself and other markets, key levels, etc. There are so many factors to consider. Congrats for being able to watch just one market.
ZigaZaga
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LOL - I did say *closely* - not *exclusively* as Dow is the one I trade the most.
So are you shorting SPDR, or decided to wait for my predicted half-hearted rally?
timwest
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I trade the SPY and IWM, but not the DIA. They are all very similar. I'm short the SPY.
ZigaZaga
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I am anxious to learn the differences in US and UK trading platforms and instruments. In any case, apart from April and May puts, I closed my short positions in DJI today. Also Still long Gap (GPS) May 38.00 puts, which I could have sold earlier on... And still thinking to buy some puts in individual equities - whatever's going to be most vulnerable in this coming bear market...
QuantitativeExhaustion
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Maybe we should add Monthly option expirations as an indicator with earnings, dividends...
timwest
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Absolutely - so important.
jmtbernardo
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166 seems too extreme. it is very risky business to trade against a major uptrend.
vlad.adrian
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It's a pitty only a few users look at this chart and acknowledge the importance of options expiration. Thank you again Tim!