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 |