The 250.35 rally target we used last week is still in play, but I can offer no guidance in advance of Monday morning’s opening that is guaranteed to survive further weakness overnight. I’ve proffered a ‘mechanical’ buy at the green line for the E-Mini S&Ps, but this vehicle would trigger a comparable signal at the red line, p=228.77, stop 221.57. Check in after the bell, since the opportunity may be developing in a way we can exploit using call options. ______ UPDATE (Apr 13, 10:12 p.m. EDT): Once again, DIA is poised to trigger a red-line buy at p=228.27, and once again I cannot recommend it until I’ve seen how stocks open Tuesday morning. _______ UPDATE (Apr 14, 6:40 p.m. EDT): DIA opened on a gap higher, negating the easy ‘mechanical’ entry we’d sought at the red line. This helium balloon is still going to 250.35, but any shot we have of climbing aboard before it gets there will have to come from an intraday set-up. Plan on shorting at 250.35 in any case, using puts priced under $1 that have a week or so left on them. The trade should not be initiated until such time as DIA trades within 0.07 points of the target. ______ UPDATE (Apr 23, 9:15 p.m.): This space for rent! _______ UPDATE (Apr 27, 9:05 p.m.): Using a 24-hour chart, I’ve changed the point ‘B’ high slightly to come up with a new target at 250.43. My trading strategy can stand as given above. _______ UPDATE (Apr 28, 9:22 p.m.): A plunge to 228.36 would trigger a ‘mechanical’ buy signal, stop 221.00. Please note that the 250.43 rally target is still viable.
DIA – Dow Industrials ETF (Last:241.04)