I’ve redrawn the chart to produce a 295.62 target that looks promising for a shortable top. Your trading bias should be bullish until it is reached, but you can short there aggressively if you’ve made money on the way up. I’d suggest using puts priced under 0.70 with 7-12 days left on them. We do not need to go further out in time because our strategy is predicated on catching a bearish reversal precisely when it begins. The new target replaces one at 291.78 that has looked less enticing as DIA’s ascent has progressed, It uses a point ‘A’ low that was made in off-hours trading, as occurred several times during the rally begun in mid-October. The target roughly corresponds to a revised ‘D’ that I have proffered for the E-Mini S&Ps. Like that tout, this one will not be publicly viewable.
DIA – Dow Industrials ETF (Last:291.54)
