As scary and counter intuitive as it seems, 10,785 is an indicated buy target for Dow Futures.
Take the low last July at 9494. Move up to the high at 12,873 just 2 months ago in May…10,785 is a 62% retracemnt of the 3,373 point rally.
Rally it close to 4K points and you get no one’s attention.
Break it 2K points and you have tv talking heads looking for razor blades, arsenic and slip knots.
If you’ve been a reader here for a while, you know I like to fade the herd.
Now’s your chance.
Buy it. Be willing to risk 150 pts. We could very easily rally 1,000 pts once we get our footing.
In my opinion, you buy it here. Risk 200Pts or 2K a contract. Goal is to make 600 points on the bounce.
We’ll see what happens. But be disciplined. Have a reason for entering a trade. Have a pre-determined exit point.
In this case, those three criteria line up.
Already this buy area paid off with a good 120point scalp today.
Either we melt down to 10K, which is possible, don’t get me wrong…
Or we catch a bid as every “buy and hold” investor decides its time to run and hide.
When they throw in the towel, that’s gonna be a buy.
The market has dropped 2K pts in 12 trading sessions. It looks like a buy to me.
That is ALL
CER