Dow 2008

[chump]

Correct me if I'm wrong but a rising wedge is a bearish pattern...

Correct , a rising wedge is a possible indicator of weakening mom in the uptrending market.
So , a rising wedge in an uptrend would have you tightening stops ,but the same pattern in a downtrend would be a continuation pattern to enter short.

 

[postman]

I'm expecting the dow to go to 565 in the next hour.

If so this will mean at least a gap close to 600 before 3pm....

 

[postman]

I'm expecting the dow to go to 565 in the next hour.

If so this will mean at least a gap close to 600 before 3pm....

Futures showing 562 with 20 mins to go still time to jump aboard.

 

[postman]

563

 

[gilligullu]

May I ask why the DOW will be back up at 600 by 3pm? Sorry if I sound stupid, but I am new to trading, just trying to understand as much as I can. Thanks.

 

[postman]

Futures showing 562 with 20 mins to go still time to jump aboard.

May I ask why the DOW will be back up at 600 by 3pm? Sorry if I sound stupid, but I am new to trading, just trying to understand as much as I can. Thanks.

I am of the opinion that there is an opening gap between the implied dow cash price and the closing value of the dow yesterday.
There are a number of threads around on the subject of "gap filling" and I think we fit the criteria today. The test of 565 in that timeframe was one of my indicators.
Hope that helps a little.

 

[postman]

I am of the opinion that there is an opening gap between the implied dow cash price and the closing value of the dow yesterday.
There are a number of threads around on the subject of "gap filling" and I think we fit the criteria today. The test of 565 in that timeframe was one of my indicators.
Hope that helps a little.

Another confirmation for me would be a touch of 575 on the futures before 1:30.

 

[postman]

Another confirmation for me would be a touch of 575 on the futures before 1:30.

 

[gilligullu]

Another confirmation for me would be a touch of 575 on the futures before 1:30.

Thank you very much for the explanation! Much appreciated!

 

[gilligullu]

Its still sitting at around 550, do you think there is still gap to be filled?

 

[firewalker99]

I am of the opinion that there is an opening gap between the implied dow cash price and the closing value of the dow yesterday.
There are a number of threads around on the subject of "gap filling" and I think we fit the criteria today. The test of 565 in that timeframe was one of my indicators.
Hope that helps a little.

Fwiw, I'd have to side with you. Probabilities favour a gap fill, but ofcourse there are no guarantees as to whether we'll actually see that happen.

 

[postman]

Its still sitting at around 550, do you think there is still gap to be filled?

I do - I also have a long position open - posted on the Live trading thread open at 549.

 

[gilligullu]

I do - I also have a long position open - posted on the Live trading thread open at 549.

Do you mind me asking whats your risk/reward targets in this situation? Thanks.

 

[trader_dante]

There is good support here. I expect the Dow to go up to 590.

 

[firewalker99]

There is good support here. I expect the Dow to go up to 590.

I think so too, although there's always the risk of breaking below 12530 marginally (shake-out).

 

[trader_dante]

Up or down it could be very sharp.

 

[firewalker99]

Up or down it could be very sharp.

entry long 12540

 

[gilligullu]

entry long 12540

What is your target?

 

[firewalker99]

I think so too, although there's always the risk of breaking below 12530 marginally (shake-out).

I can't give it to you any better than this 12527 and spiked up... shake-out indeed

 

[firewalker99]

What is your target?

590, 600 tops... but I might exit earlier if I see price struggling
I don't really have fixed targets in mind, I exit when the chart tells me to. But the first potential level of resistance is 590-600...