DIA spent most of last week avoiding what I still regard as a very likely fall to at least 200.92. This midpoint Hidden Pivot support is nicely located to set up a enticing ‘mechanical’ buy, although I’ve already warned that call options may prove too pricey to yield the kind of edge we need to do the trade. Still, with DIA priced above $200 per share, we’ll need to find a way so that subscribers with relatively small trading accounts can participate. In practice, this will probably mean buying the nearest strike with soon-to-expire options offered for under $1.00, and bidding the options only when DIA has gotten with a dime of the target.
DIA – Dow Industrials ETF (Last:200.92)