Thursday, June 26, 2008

Dow Crahses Through Support!



As you know I've been bearish on the Dow and today we saw the dow tank 358 points! You'll notice in the above chart that the dow has taken out a significant support level. My next downside objective for the dow is the 10700 area.

You'll recall a few days ago I exited half my short position in DIA. I now have a little less than half my original short position and I'll trail my stop to allow profits to run. Big day today for the bears.

2 comments:

Anonymous said...

Good call Kevin, both the Dow and the FTSE arent done yet and we could see the DOW 11500 and the FTSE 5000 odd come summers end

Worth remembering the profit warnings havent come out yet as the recession bites - and they will

Anonymous said...

Hi Kevin,

Fully agree with your analysis.

Can you tell us how you are trailing your stop? Parabolic S.A.R.? M.A.? last candle highs?

Cheers,
J.C.

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