I'm putting in an order to buy 4% SDS when DJI reaches 10,490. The futures high is 10,484 and the discount is now 7 points, so the order is to short cash SPX when DJ futures old high is reached. I'll wait to short futures until near the close.
One thing I’ve noticed is that DJIA has 2 trend lines that intersect at DJIA 10,000 or maybe a little below that, say 9975. The first one goes all the way back to 1996 and if you want to go back farther it was resistance in 1978 and has 6 intersections, and the second one dates back to the March low of 2009. If we break DJIA 9950 I think the major slide that’s being speculated on is in play.
Steve
ReplyDeleteI think the top is in and I’ll be surprised if we go any higher in the cash market.
Jack C
I agree. The order is a hail Mary until near the close.
ReplyDeleteSteve
ReplyDeleteOne thing I’ve noticed is that DJIA has 2 trend lines that intersect at DJIA 10,000 or maybe a little below that, say 9975. The first one goes all the way back to 1996 and if you want to go back farther it was resistance in 1978 and has 6 intersections, and the second one dates back to the March low of 2009. If we break DJIA 9950 I think the major slide that’s being speculated on is in play.
Jack C