DIA still has an outstanding target below at 271.71. If it rallies to x=279.80 in the meantime (see inset), that would trip a theoretical ‘mechanical’ short. This one is for experts only, however, since the signal would be a weak one. Signs are slightly bullish, though, since two days of trying could not bring DIA down to p2=274.40. In addition, the bearish impulse leg from the 292.36 high recorded on September 3 is weak. My hunch is that bulls and bears alike will get racked by Mr. Market this week and that any decent trading opportunities will come from intraday signals on the lesser charts.______ UPDATE (Sep 14, 8:31 p.m.): The day began with a gap-up short squeeze and ended with shorts looking like dead ducks. If more of the same send DIA above the 285.79 peak from 9/4, bears had better dive for cover. _______ UPDATE (Sep 15, 5:11 p.m.): Mr. Market, friendly as a rattlesnake, head-faked DIA above an important peak on the opening bar, then it receded for the remainder of the day. This was meant as a reminder to bears that even when they are right, which seems to be the case at the moment, it is still extremely difficult to hold onto a well-timed short position. We shall see. _______ UPDATE (Sep 16, 5:22 pm.): Distribution, anyone? Pretty feeble, at that. _______ UPDATE (Sep 17, 11:05 p.m.): The gap through =278.76 on the opening bar means DIA is headed down to at least D=273.29. You can get short ‘mechanically’ with put options if this hoax rallies to the green line, 281.50. Stop yourself out at 284.24.
DIA – Dow Industrials ETF (Last:279.60)