In October of 2014 we dropped to a low in Dow futures at 15,743. That is a one year low for the index. Between October 13th and December 26th, the Dow rallied 2,310 points… 15% in 2 months. We are at key technical levels which all traders, be they technicians or fundamental traders are familiar with. They may not admit it to their clients, but they are aware of these key pullback levels. 17,170 is 38% Retracement of that 2-month 2,310 point rally. 16,900 is the 50% Retracement of that 2 month, 2310 point rally. 16,624 would give us a 62% retracement. These levels are watched far and wide by professional traders and money mangers. These are levels that a true , buy and hold , long term investor might take advantage of to “buy on dips” If you are concerned that the market will pull another 2007 to 2009 loss of 50% where the Dow went from 14,000 to 6500.. then you need to have Dow index puts on or S&P Index puts in place. The puts allow you to stay long with your stock holdings, instead of trying to time the market.
