The Dow is stuck in a trading range since the middle of June, based in my Elliot count I’m still favoring shorts but that can change according to the support and resistance levels.
For next week: Closing prices over 12909 with low volatility will be a strong buy signal, below 12524 will put the Dow in short territory, down moves are fast and most of times I only get 50% of the move. Three days below the important 12524 level and I will short it all. Prices between those two levels are almost sure neutral.
Financials are starting to show low relative strength, preferring the group for shorts if the markets begin going down decisively.
As with the Dow, two important levels are well defined for next week. Below 267 is an open invitation for the shorts to come, above 275 will end the possibilities for shorting but not necessarily will be a long signal. In the middle is a no trade zone.
I rarely trade stocks, limiting my trades in the ETF-ETN universe; anyway here are two trading ideas in the financials group:
BSAC closed above the 78.79 level, I would wait for a close above 80.60 before buying, a well-defined resistance.
AXP is showing weakness, the 55.88 level should not be broken to the upside for the shorts to have an opportunity.
As of last Friday I only have a long position in TLT and no shorts. I bought on July 6; below 128.21 will put my long in jeopardy, above 130ish would signal an upside acceleration.
I am funding my swing trade ETF-ETN only mini hedge fund open only for non US citizens or residents. Anyone interested please email.
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