DIA has been playing pattycakes with my 304.07 target for weeks, headbutting it repeatedly without generating any significant pullbacks. There is no question that buyers are feeling the resistance. A two-day close above it, or a print exceeding 307 (or so) intraday, would imply a bullish breakout, but until such time as it happens, the burden of proof will be on bulls for a rare change. I’d suggested buying February 19 250 puts for 0.80, but Friday’s mild weakness left them just out of reach. Keep trying, but only if DIA has not traded above 304.07. If that should occur, I will update this guidance. ______ UPDATE (Dec 21, 6:04 p.m.): I still like the puts for 0.80, but ratchet it down a nickel at time if DIA moves above 304.07. ______ UPDATE (Dec 22, 8:31 p.m.): In the chat room today I recommended scaling in a few puts on rallies, even if the Feb 19 250s have remained just out of reach. The smell of distribution is so thick you could cut it with a knife, and you will have noticed by now that even though DIA has been head-butting my longstanding Hidden Pivot target at 304.07 for weeks, it has not been able to penetrate it. Here’s a chart that shows this distribution clearly.
DIA – Dow Industrials ETF (Last:300.12)