As of this moment Dow is trading at 17716, down114 points. Traders be ready to jump into trade as discussed below.
What we are going to discuss today is for traders’ eyes only. Investors please do not try this risky strategy that I am going to discuss today. One has to be nimble footed and there is no room for fat fingers.
I will be giving Dow levels to trade. Scrips which are co-related with Dow movement can also be traded, keeping given Dow levels in view. I hope I am clear. If yes, let’s trade ;-
Condition # 1
- If Dow falls down to 17400/17450, then buy.
- Sell your position when Dow bounces back to 17850/17900
- To square off this trade should not take more than a week.
- If this trade materializes then you stand to gain 400/500 Dow points in quick time.
Condition # 2
- If Dow does not breach today’s low of 17700, then wait for right conditions for sell to develop.
- Dow is going to trade sideways, so sell will come if Dow takes bounce from 17700.
- I will let you know in advance when sell conditions develop.
By now you must be aware that I had predicted these volatile trade conditions on 15 Apr 2016, when I had recommended exiting long positions in Dow. For those who are visiting this page for the first time, you may like to read that post titled Bears Sharpening Daggers -US Markets in Danger of Bear Grip
Further I had mentioned in this post that 18000/18200 is selling zone in Dow and bears would like to ferociously defend this last known territory. In that post, I have also discussed about my apprehension of “Bull Trap”, which seems to be turning out correct.
Today I am giving out this trade, mentioned in Condition # 1 above, only for traders. From 15 April 2016 onward we have been unemployed as mentioned in my earlier post Out of Work But Thankfully Out of Danger – US Markets Dive.
I am reminded of the cliche “Better safe than sorry”.
