This is a daily chart of Sep Dow Futures. If you’ve been following along, I have been suggesting a short position against 15,500 for the past several weeks. We took 100 ticks of heat, and settled two days above 15,500. We never got the third day of settlement above 15,500, and because of that, although we still got stopped out of 2/3 of the original position, we are in good shape on the other 1/3. I even suggested adding to that short position on Monday when I came back from vacation.
1500 and then 14,900 are the down side objectives if we have a bigger flush. Remember, its August. Most traders are still on vacation. However, the bulk of remaining traders are pros. Pros like to sell markets b/c markets drop 3 times faster than they rally. Because of this tendency, we could have a continued flush lower.
Move protective buy stops lower and guarantee that no matter what your profits remain profits.
CER