Actionable Trade-Alert
from Rick in the Trading Room
(Please check all related discussion in the room before you do any trades.)
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19:43 |
I was setting trade alerts for numerous symbols and happened on a DIA weekly chart that looks menacing. It offers an even clearer picture than the IBM and NVDA/RCA charts I’ve displayed to show how a head-fake to a marginal new record can set the hook. If p=384.26 support fails, I expect the implied 1700-point drop in the Dow to come quickly. Here’s the chart: |
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19:43 |
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19:59 |
I re-used an ‘a-b’ trigger here, but it was only to establish a minimum downside target. The next-bigger a-b (a=469.50 on 1/7/22) yields a target of….317.07(!). I’d suggest that you keep that number well in mind if a hellacious plunge develops over the next 5-7 days. If you want to take a flier on some cheapie puts (i.e., under 0.60), I’d suggest going out no further than June 21 or 28. The puts are too thinly traded to trace out HP patterns, so I cannot offer an optimal price for buying them. |
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