Dow Jones Industrials Update

As you know I've been short DIA for about a 7 weeks. I just wanted to update where my protective stop is which is right above last week's high.

I also feel there is a buying opportunity in the very near future and I have a list of ETFs and groups that I feel might be worth buying. I'll share this list with all of you if and when the market firms up a bit but for now I'm riding this downtrend.

DIA or Indu? Which To Use For Candlestick Charting

I just wanted to point something out today about using candlesticks on the Dow Jones Industrials because today is a good example of a common mistake I see people make in my opinion.
The top chart is a daily chart of DIA (ETF for the dow jones Industrials) and in the lower panel we have INDU. I think it's a mistake to use candlestick analysis on the INDU because all of the opens are unchanged... That's right, every open is flat and then once the components in the dow begin to open, the INDU will then move to reflect it's true value. So for example if the dow jones industrials are going to gap up on the open, INDU will first open unchanged and then rally. DIA is a much more accurate reading for candlestick charting. DIA will show the gap up.

Notice today INDU is a white colored bar and is almost a doji...but if you look at DIA you will see a completely different looking candlestick formation. This is not earth shattering news but it's something I wanted to share with you if you follow candlestick charts.. DIA is the better chart to look at when it comes to candlestick charting because it reflects where the dow jones industrials were really trading on the open.