I’ve put DIA back on the touts list in case it triggers a ‘mechanical’ buy signal that subscribers, particularly newcomers to Rick’s Picks, could use to get long. Although I prefer to trade the underlying shares rather than options when using this kind of entry set-up, because this vehicle is pricey we can use calls instead. Ideally, the signal would come on a sharp pullback from around 253, but we may see other opportunities intraday. You’ll need to be tuned to the Trading Room if they materialize too quickly for a tout update that would generate an email notification. To receive these timely messages, check the ‘Get Touts’ box in the Profile section of your account Dashboard. Looking just ahead, there is upside potential to as high as 267.28 if buyers can push decisively past p=247.79 or close above it for two consecutive days. ______ UPDATE (May 24, 3:40 p.m.): DIA spent the entire week screwing the pooch, winding up almost exactly where it was a week earlier on a gap-up opening that is still being digested. Any decent entry opportunities that arise will come intraday, so stay tuned — either by checking the Trading Room for timely discussion or enabling update notifications in your account dashboard. _______ UPDATE (May 26, 9:25 p.m.): A pullback to the green line (238.05) would trigger a ‘mechanical’ buy, but we’ll take a pass, since the point B high of the pattern is 100% pork sausage. Another problem is that DIA did not follow the S&Ps lower at the end of the day, adding to our consternation. The gap up through p=247.79 is bullish nonetheless and implies DIA will reach the 267.28 target with little trouble._______ UPDATE (May 27, 9:37 p.m.): No change. DIA still looks like a lead-pipe cinch to reach 267.28, although it has been moving too steeply to let us in via a ‘mechanical’ set-up. Caution is advised at 257.74, the secondary pivot, since even strong rallies have been known to stall or die there. ________ UPDATE (May 28, 10:22 p.m.): DIA turned down from within a millimeter of the secondary pivot at 257.54 noted above. This will not affect the odds of a finishing stroke to 267.28, but it does warrant caution and an open mind concerning how far the selling could go.
DIA – Dow Industrials ETF (Last:254.40)