If You Are Thinking of A Short.....
While the markets remain bound in a sideways range (which I see for the forseeable future) you may be wondering where they are headed next. I think I may have found a little tid bit for you in the DOW.
You can see from the chart below which is the weekly chart and one of the more powerful ones that we are at the top of a falling triangle. That doesn't really mean anything in these rigged markets but it just might. You see it is occurring at the bottom of the move. We are now at the upper range of it and the markets are either going to make new highs or probably fall from here. My bet is on a fall.
If you are thinking of a short with the least risk to potential reward this might just be the spot. It is a major volume area and where the powers that be might just turn the markets. I am a little leery to short this market at all because it always seems to find legs but if you are a risk averse person this is where the risk is lowest. I think from here it might fall to the 23,700 area or slightly lower but it could ramp higher too.
So if you want to try something and you have the account size I would put a stop 500 ticks away and see if she falls back 2-3000 ticks. If it does you are in good straits. This requires proper use of leverage and if you just have a ten thousand account this is not for you, especially if you are using contracts on the futures market. It won't work for you. You will likely be stopped out with a 5k loss where 50% of your account will be gone. If you are trading CFD's where you can control the leverage size then this might just be for you. The risk to reward is good at 1:3 at least.
So if you care to join me that is what I am looking for.
You can see from the chart below which is the weekly chart and one of the more powerful ones that we are at the top of a falling triangle. That doesn't really mean anything in these rigged markets but it just might. You see it is occurring at the bottom of the move. We are now at the upper range of it and the markets are either going to make new highs or probably fall from here. My bet is on a fall.
If you are thinking of a short with the least risk to potential reward this might just be the spot. It is a major volume area and where the powers that be might just turn the markets. I am a little leery to short this market at all because it always seems to find legs but if you are a risk averse person this is where the risk is lowest. I think from here it might fall to the 23,700 area or slightly lower but it could ramp higher too.
So if you want to try something and you have the account size I would put a stop 500 ticks away and see if she falls back 2-3000 ticks. If it does you are in good straits. This requires proper use of leverage and if you just have a ten thousand account this is not for you, especially if you are using contracts on the futures market. It won't work for you. You will likely be stopped out with a 5k loss where 50% of your account will be gone. If you are trading CFD's where you can control the leverage size then this might just be for you. The risk to reward is good at 1:3 at least.
So if you care to join me that is what I am looking for.
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