Friday, August 3, 2007

Where Should The Dow Find Heavy Overhead Resistance

I have gotten quite a few questions regarding where the Dow should most likely find heavy resistance and thus a good place to perhaps sell short or buy puts for a quick slam bam!

The most logical Dow upside target from here is 13685 +/- 20 points. From this point I expect the rally to fade and the market to give one final collapse down to the 200 day moving average, which currently sits at 12785.

12785 +/- 20 points should be the ultimate low and should this occur on August 24th +/- 2 days then we will really be in great shape for a phenomenal rally.

I will be sending out the buy list to execute once the downside has been satisfied.
In the meantime, keep your hedge in place and pay attention to how quickly the all clear is sounded just before the next slam.

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