www.varchev.com

DJIA: record levels dangerous for Long, no signal for short, wait

A new historical maximum for the index. There is increase caution around these levels, because each new peak is accompanied by a slight correction. The trend is long, and the only thing appropriate for now is to wait for a correction around the 50-day average for a new long. Now the levels are high and the risk is great, we remain away from the market. Suitable locations for long positions are after correction of the index to support levels of 16690, and near the 50-day period moving average and the short-term target of the short formation.

The long-awaited correction hasn’t appeared on the market, which in the short term is good for the index, but in the medium term increases the risk of a sharp fall. CONCLUSIONS: market sentiment is positive despite divergent economic data. The trend continues upward, but the prices are at the top. The long is a risk, but the short position is more risky, especially now before the data for the job creation and unemployment levels in 15:30 .

For now we stay away from the market and we weyt for a new correction on the 50-day moving average for a new long position. We should not forget the fact that this season is the season of the financial statements in the United States, a period known for raising volatility and light adjustments. This we will use for better levels of purchases around 16690.



Read more:
RECCOMEND WAS THIS POST USEFUL FOR YOU?
If you think, we can improve that section,
please comment. Your oppinion is imortant for us.
WARNING: Any news, opinions, research, data or other information contained within this website is provided as general market commentary and does not constitute investment or trading advice. Varchev Finance Ltd. expressly disclaims any liability for any lost principal or profits which may arise directly or indirectly from the use of or reliance on such information. Varchev Finance Ltd. may provide information, quotes, references and links to or from other sites and blogs and other sources of economic and market information as an educational service to its clients and prospects and does not endorse the opinions or recommendations of the sites, blogs or other sources of information.
Varchev Finance