DIA – Diamonds (Last:108.87)

Let’s add the Dow Industrials to the list of major stock indices that we would like to short.  This can be done using a midpoint pivot of 111.50 from the weekly Diamonds chart.  We recommend selling at 111.37 with a stop at 111.77, risking $40 per 100 shares traded.  The equivalent of the pivot in the June Dow futures contract is estimated to be 11087.  (Posted by Doug McLagan) ________ UPDATE (2:40 a.m. EST, March 31):  In reconsidering the risk/reward characteristics of this trade, we have decided to cancel the recommendation.  Should the target be reached, however, traders should be alert to hidden pivot-based opportunities to get short if a reversal there appears to be underway.  For the Dow Jones Industrial Average, the midpoint is at 11156.44.

11156.440